Over six out of 10 (61%) of Dubai residents lack home insurance, according to a recent poll conducted by MoveSouq.com, a Dubai-based online home services marketplace, and RSA.
Compared to tenants, adoption of home insurance among home owners is substantially higher as two thirds (66%) have an insurance policy in place to cover their home and contents. However, only one quarter (25%) of tenants feel the need to have home insurance coverage.
The survey also showed that 67% of apartment buildings and 50% of villas in Dubai are uninsured.
The results are based on an online survey of more than 200 employed respondents in Dubai.
MoveSouq.com CEO, Ms Bana Shomali, said: “Given the widely reported incidents of apartment building fires in major residential areas of Dubai, it is quite surprising that so many homes remain uninsured even when basic content insurance is widely available and affordable.”
Health and car insurance covers are more widely adopted in Dubai. Over nine out of 10 (91%) employed Dubai residents report that they have medical insurance, while all respondents who drive confirm they have motor insurance. “The relatively higher uptake of these types of insurance should come as no surprise as they are mandated by the government,” added Ms Shomali.
The survey also revealed that some of the other insurance policies with low penetration levels among employed Dubai residents were travel insurance (36%), personal accident insurance (40%) and life insurance (45%).
Commenting on the results, RSA’s Sales & Marketing Director, Mr David Harris, said: “While it is not surprising to see that the uptake of home content insurance remains low in Dubai, it is alarming that it is used the least compared to other types of insurance with only three out of 10 saying they have applied for it. These penetration levels are far lower than more mature markets in the West and can be attributed to the prevailing perception among a majority of residents that home and content insurance is not necessary or that it is not worth the expense.
“Furthermore, we have seen that people are often only likely to consider this type of insurance once the damage has already been done.”