The Northern Municipal Council has introduced a rule in the Northern Governorate, one of four governorates in Bahrain, requiring property owners to insure multi-storey residential buildings for fires and other risks.
While the rule is currently binding only in the Northern Governorate, the Minister of Works, Municipalities Affairs and Urban Planning Essam Khalaf has the authority to extend it nationwide.
The rule does not apply to private homes, such as villas or government-funded social housing, reported Gulf Daily News. There were concerns that some private residences were so rundown that they may be uninsurable.
With the insurance, the government would no longer have to shoulder the costs of providing temporary shelter to those left homeless as a result of a fire, a gas leak or other incidents. Such cases were previously referred to the Labour and Social Development Ministry, which provides temporary shelter and living expenses.
National Municipal Grievances Committee chairman Yousif Al Ghatam was quoted as saying, “Forcing insurance on landlords will certainly be beneficial to all parties since damage will be repaired by companies issuing the policies. They will also compensate tenants, saving a lot of money for everyone.”
He added, “All expenses related to fires and emergencies would be covered by insurance companies, not the government.”
In an ideal world, home insurance would be made compulsory across the board, similar to car insurance, said Northern Municipal Council chairman Mohammed Buhamood. However, it is not feasible to impose it on all private homeowners since the policies were too expensive for many, he said. M