UAE: 3 in 4 people are uninterested in buying home insurance
Source: Middle East Insurance Review | Oct 2019
Three in four (75%) respondents said that they are not interested in purchasing home insurance, while 18% were not sure, according to findings from a survey on user knowledge and habits regarding home insurance conducted by a major UAE online property platform, dubizzle Property.
Furthermore, only 30% had full knowledge of the benefits of home insurance, with the majority (70%) being unaware of the type of coverage they can receive.
The findings also revealed that out of the 1,458 respondents, 63% do not own home insurance, leaving the majority susceptible to major losses or damages. The data show that out of the total number of respondents, more than 80% rent the properties they live in, and 70% live in apartments.
There were several factors highlighted by the respondents that deter them from wanting to purchase home insurance, with 41% claiming they ‘don’t need it’, followed by 24% believing that ‘it is the landlord’s responsibility’, and 19% stating that home insurance is ‘too expensive’. Other factors include not seeing the benefit of owning it (17%), not knowing how to buy it (9%) and not trusting insurance companies (8%).
“Home insurance should be considered as the next step in the home-seeking journey in the UAE as it can protect residents from potential losses in the future,” said Mr Matthew Gregory, director of sales, dubizzle Property.
“The region’s low penetration of home insurance is largely a result of lack of awareness coupled with misconceptions around affordability and coverage policies...While people in the region generally adopt an ‘it won’t happen to me mentality’, they are exposing themselves to larger potential damages as opposed to taking preemptive measures,” commented Mr David Harris, director of distribution at RSA Insurance. M
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