Phone and jewelry loss, water leaks top claims in UAE
Dubai 8 May 2019: Most home insurance claims came from damage or loss of personal belongings (58%), with 70 per cent of them made on damages, and 30 per cent on loss of personal belongings.
Amazingly, one home owner even claimed Dh900 for spoiled frozen food, according to InsuranceMarket.ae, one of UAE’s leading digital-first insurance service.
Lost portable electronic devices and mobile phones account for 83% of personal belonging claims, while water leakage accounts for 90% of claims made against damage to building, it said.
InsuranceMarket.ae is urging residents to insure their homes, given the fact that just a little over 10% have home insurance. This leaves the vast majority of the population susceptible to major losses or damages.
Over four-fifths (83%) of claims made against personal belongings, were for loss or damage to portal electronic devices, primarily mobile phones, with jewelry accounting for the remaining 17 per cent of claims.
Claims on damages to building and damage to contents made up 21 per cent respectively, with the vast majority of building damage claims (90%) due to water leakage. Accidental damage makes up over half (57%) of all contents claims.
Wrong Assumption
Avinash Babur, Chief Executive Officer at Insurancemarket.ae says: “A common misunderstanding of home insurance is that only individuals who own their apartment or villa can purchase this type of insurance. Tenants often wrongly assume their home contents are covered under the landlord’s or building’s policies. However, tenants who rent an apartment or villa can – and should – purchase home insurance to protect their contents, such as your furniture or home electronics, and personal belongings like watches, jewelry and mobile phones.”
“Another common misunderstanding about home insurance is that it is expensive, which is not the case. Home insurance premiums, across building, contents and personal belongings, make up only a small percentage of the total value of each item. For example, building insurance premiums range from 0.02% to 0.07% of the value of the property. So, when compared to the value of your assets and possessions, buying home insurance makes sense, offers peace of mind and undoubtedly outweighs the amount you would otherwise spend replacing items or undertaking repairs paid for out of your own pocket.”