Nexus Insurance Brokers chief also hints that increase will be short-lived as only 10% have home and contents cover
UAE insurers are expecting a surge in residents buying home and contents insurance in the wake of Sunday’s Zen Tower fire in Dubai Marina.
“We are definitely busier than usual with enquiries for home insurance since news of the fire, and this is a pattern we have observed after similar incidents in the past,” said John Waldron, head of Private Clients at Nexus Insurance Brokers.
But he added that the increase is likely to be short-lived if it follows the same trend as previous fire-related incidents in Dubai.
“When a fire happens, you do see that immediate response, and there is a brief surge in new business enquiries. After the fire in the Torch Tower last year, we saw a massive spike in enquiries coming into the market for maybe a three- to four-week period, but then the interest essentially reverts to typical volumes,” he said in a statement.
Waldron added that penetration rates of home insurance in the UAE are very low by international standards, with less than 10 percent of the population covered.
According to Waldron, there is a misconception as to the cost of home insurance in the UAE, as many clients are surprised by just how good a value proposition it can be.
“At a cost of less than a dirham a day for cover, it represents terrific value for peace of mind in the possibility of the worst-case scenario arising,” he said.
“If there is a fire, it is not the landlord’s responsibility to provide alternative accommodation to their tenant while repairs are ongoing. Therefore, having cover in place for this through home insurance can save the insured thousands of dirhams in the long run, as costs can spiral for alternative accommodation if the damage to the affected property is extensive.”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.