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Wed 12 Jul 2017 02:27 PM

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UAE residents shy away from buying home insurance

35% said they prefer to “simply take the chance that nothing will happen”

UAE residents shy away from buying home insurance

The majority of UAE residents have not taken home contents insurance policies, according to a local comparison site.

In its latest survey, compareit4me.com said 69.1 percent of people in the country are currently not signed up for a home contents insurance policy despite 84.5 percent admitting they would feel more comfortable if their belongings were covered by insurance when they travel.

A total of 36 percent of the respondents said they understood the importance of home insurance, but prefer to “simply take the chance that nothing will happen”.

The survey also found that 35 percent of respondents did not see any point in buying home insurance.

“What this survey illustrates is a need for greater education on home insurance in the UAE. It would appear that, while UAE residents associate the idea of home insurance with safety and protection, many don’t understand the practical benefits that come with having your belongings covered by a home insurance policy,” said Jonathan Rawling, chief financial officer, compareit4me.com.

“If disaster struck and all of your belongings were either lost or destroyed, replacing everything would mean parting with an awful lot of money. A home insurance policy would protect you against that expense, with the insurer footing all, or at least part, of the bill.

“Of course, we live in a relatively safe part of the world, but accidents and upsets can and do happen, meaning it makes sense to protect yourself.”

More than 19 percent said the reason for not being covered by home insurance was they thought coverage was too expensive, while 9.2 percent claimed that home insurance was too difficult to arrange.

The average policy sold on the comparison website goes for AED220 to AED28,000 which would cost to re-furnish the average one-bedroom apartment in the UAE.

The survey is based on responses from 330 individuals in the UAE, which was conducted between June and July 2017.

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