Middle East - UAE: Demand for home insurance triples in wake of New Year's Eve fire
Source: Middle East Insurance Review | Feb 2016
MoveSouq.com, a portal for home services in the UAE, saw a tripling in the number of requests for home insurance in the first week of 2016, compared to its weekly average of requests.
Demand for household services, including home insurance, typically increases at the start of each year, said MoveSouq.com CEO Bana Shomali. “This is because UAE residents often return from holidays abroad with resolutions to fix and protect things around the house...but this year, the jump in volume is exceptional.”
The primary driver for the surge in enquiries was the high-profile fire on New Year’s Eve at the Address Hotel in Downtown Dubai. “This incident caused many UAE residents to look at their own homes and ask themselves, ‘Am I protected?’,” she said.
Home insurance rates in Dubai are low at less than 40%, according to a 2015 poll of 200 Dubai residents by MoveSouq.com. The same survey revealed that adoption of home insurance is substantially higher among homeowners compared to renters. Two thirds (66%) of homeowners had insurance in place to cover their home and contents, while only one quarter (25%) 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,” Ms Shomali said.