86% of UAE residents do not have content insurance of which 67% would still not consider taking cover even in the light of the recent Torch Tower Blaze reveals our latest survey. Of those who do not have insurance, 45% did not see contents insurance as a priority while 34% said they were not sure how to obtain it.
“When we conducted a similar survey in 2012, following the Tamweel Tower fire, we were able to identify a significant gap in people’s awareness about the importance of home contents insurance,” says our CEO, Ambareen Musa “The results of today’s survey confirm that this gap has not shrunk even after multiple incidents – like the recent Torch Tower fire which left 101 apartments inaccessible to this day due to the extent of fire damage. Very little has changed in attitude towards protecting home contents” she adds.
[Read results of our previous survey: 86% of UAE residents don’t have home insurance]
Impact of fire incidents can be much more significant than we think
The results of the survey reveal that 5% of respondents have previously been hit by loss of possessions due to a fire. Many respondents also seem to think that fire risks and therefore home contents insurance are relevant only to people who live in high-rise towers. “The reality is that fires and floods can happen anytime to anyone’s home. More importantly any damage to the property and that of the neighbour’s is the responsibility of the person who caused the fire, whether accidentally or not. So not only do you have liability towards your landlord but to the next door apartment as well.” Musa says.
Cost and Process of getting content insurance is still not very well advertised
34% of UAE residents without home contents insurance claim that they do not know or understand the process of obtaining cover. “I never see it advertised anywhere and therefore not something I think about. Even if I did want to take it up, I would not know where to start” says Adam, 33 from Dubai. The survey shows that UAE residents are in the dark where home contents insurance is concerned: How to buy it, how long it takes to put in place and how much it costs. Home content insurance can cost as little as 1 dirham a day and it can be bought in as little as 48 hours – facts that many UAE residents are not aware of.
Musa adds “There still seems to be room for education and awareness around protection of one’s possessions and liability when renting or owning a property. There needs to be more awareness built around the cost and the process of getting content insurance. We have put together a full guide on the important facts of home content insurance on Souqalmal.com.”
Important home contents insurance facts everyone should know:
1. Home contents insurance covers all of your valuables even if you lose them while you are outside of your home
2. Contents insurance will usually cover you against the liability towards your landlord.
3. Home insurance policies are available in three forms:
- Personal belongings – only the items that are movable and you bring when you are out
- Content – Existing content of the household e.g furniture, TV etc
- Building – Insurance cover on the actual villa or apartment if you are a landlord
4. Home insurance policies can offer all of the below to ensure that you have all areas covered:
- Loss of rent: As a landlord, some policies cover your loss of rent while property is damaged.
- Alternative accommodation: Your insurance can provide you with alternative accommodation while repairs on your home are taking place.
- New for old replacement: Should your items be damaged due to an incident in the home, you can replace the items based on the value they were when you purchased them, as opposed to their current market value.
- Domestic help: you can choose to cover your domestic help for accidental medical expenses or death/disability.