The vast majority of UAE residents appear unwilling to invest in a home insurance policy that might protect their belongings in the event of a disaster despite the fact that almost half have suffered home damage, according to a new survey.
The poll of nearly 400 people, conducted by yallacompare, the comparison website, found that just 10.9 percent of UAE residents are currently subscribed to a home insurance policy.
Of the reasons given for not purchasing home insurance, the most common answers included a perception that policies are too expensive, and a perception that there is no point in home insurance.
“These findings suggest that we have a lot more work to do when it comes to educating consumers on why home insurance is important. A similar survey conducted by yallacomapre in July 2017 found similar levels of home insurance penetration, but price was cited by fewer people as a barrier to purchasing a policy,” said Jonathan Rawling, CFO of yallacompare.
“Our answer to those who think home insurance is too expensive would be that, actually, it’s a bargain compared to the alternative of losing all of your belongings and having to replace them yourself."
In 2016, the website conducted a study that found it would cost at least AED28,000 to re-furnish the average one-bedroom apartment in the UAE.
The results of yallacompare’s most recent survey come as almost 40 percent of respondents reported that they had experienced issues at home that threatened their belongings.
The most common issues included severe electrical malfunction and flood damage.
Of the respondents who are subscribed to a home insurance policy, 18.7 percent said that the insurer paid out whatever was needed with minimal hassle while 43.7 percent said that the process of claiming was mostly easy, despite some disagreements over the payout.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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