The renting community in the UAE is feeling the heat about home insurances. At Dh1 per day, home insurances come cheap, and help residents protect their home and personal possessions from fire, accidental loss, thefts, flooding or other damages.
“We have been living in the UAE for six years now, but never considered signing up for home insurance. We know it’s important, but never got down to doing. A lot of things in life are unplanned, so it’s always wise to be prepared for the unexpected. This year, we plan to sign up and ensure we leave nothing to chance,” said Sheetal Savant, a resident of Muhasinah.
The attractive rates are an added incentive for residents. “It’s an amount that will not burn our pocket, but one that will give us peace of mind,” added Kiran, a resident of Dubai Marina. “Living in a high-rise makes it even more crucial.”
Radhika got a quote for Dh800 from HSBC, and confirmed she's in the process of signing up. "If you work out the math for HSBC, the Dh800 annual subscription will work out to Dh2.19 per day for a year."
Insurance companies are flagging yearly subscriptions for home and personal belongings for as less as Dh1 per day for an entire year.
An agent at Nexus UAE informed that for Dh100,000 worth of home valuables, the yearly home insurance plan is Dh400. This works out to Dh1.09 per day. “The calculation will include everything from personal possessions, electronics, furniture, and collectibles,” she added. The insurance also offers alternative accommodation in case your home is made temporarily uninhabitable due to any disaster.
The estimate is based on the customer’s declaration, the agent added. “It’s only for high net worth, amounting to Dh10 million and more, that our official will verify the declaration.” When the claim is made, the receipts of the items will have to be furnished.
Signing up for home insurance is a fairly simple exercise. Once the documents are submitted, it will take a day or two to get approved and sealed.
A recent UAE survey confirmed the jump in enquiries for home insurance has been three-fold.
Movesouq.com claimed the enquiries have tripled since the beginning of the year. “This is because UAE residents often return from holidays abroad with resolutions to fix and protect things around the house,” explained Bana Shomali, website CEO.
Haris Milonas, executive vice-president at Oman Insurance, said, “Such unexpected incidents highlight the important value of home insurance covers. Today, contrary to what people think, home insurance is very affordable and just a phone call away.”
In the 2015 poll of 200 Dubai residents, MoveSouq.com found that more than 6 out of 10 (61 per cent) of Dubai residents do not have home insurance. The same survey revealed that adoption of home insurance is substantially higher among homeowners compared to renters. Two thirds (66 per cent of homeowners had insurance in place to cover their home and contents, while only one quarter (25 per cent of renters had taken out home insurance coverage.
“But this mindset is changing as renters and homeowners alike start to realise that home insurance provides critical protection from a risk that is becoming increasingly visible in Dubai,” Shomali added.