UAE: Insurance sector wants fire insurance added to tenancy agreements
Source: Middle East Insurance Review | Jun 2018
Executives and managers of insurers have proposed the inclusion of fire insurance cover in home contents and civil liability insurance as a term and condition in rental agreements in light of the weak demand for this product.
The lacklustre demand is due to the low level of awareness and poor marketing for this line of business, reported Emirates Today. This means that most homes are still not covered by fire insurance, with one estimate being that 90% of residential units lack fire insurance.
The level of demand for fire insurance policies for homes and for third party liability cover is still very weak, said Mr Jihad Faitrouni, CEO of Dubai Islamic Insurance & Reinsurance (AMAN), adding that third party liability insurance is important because a fire in an apartment may spread to or damage other apartments.
Mr Musa Al-Shawahin, CEO of My Partners, an insurance and risk management consultancy said that while demand has increased for fire insurance following a series of fires in residential towers in recent years, the level of demand is still low relative to the number of residential units.
He pointed out that a large part of these insurance policies are acquired for residential villas, suggesting that an insurance policy is included as a provision in leasing out such units.
Insurers lack organised marketing plans for home fire insurance, he said. In addition, intermediaries fail to pay much attention to this class of business because the incentives are not sufficiently attractive to them. M