The average cost of refurnishing a one-bedroom apartment in the UAE is AED28,000 ($7,623), according to research by finance comparison site Compareit4me.com.
The amount is equivalent to 127 years’ worth of home insurance coverage, the website claimed, with an average annual policy costing just AED220 ($59.8).
The findings come as more UAE residents are being urged to insure their homes in the event of accidents and fires. The UAE has witnessed a spate of fires over the past two years, including one last week that damaged the upscale Oceana residential complex on Dubai’s Palm Jumeirah.
On New Year’s Eve, a high-profile fire broke out at The Address Downtown Hotel, leaving fifteen people injured and one killed.
Compareit4me.com’s research is based on the estimated cost of replacing the contents of an average apartment, and takes into account the cost of major furniture purchases such as dining tables, sofas and TV stands, as well as basic household electronics such as fridges and washing machines.
The research claims it could cost up to AED3,460 ($942) just to refurnish the average kitchen – even if buyers opt for second-hand items. For the average living room, where expensive electronic gadgets are often housed, that number rockets up to AED15,000 ($4,083), it said.
“People are often deterred from taking out home insurance because there’s a prevalent myth that it’s expensive,” said Jonathan Rawling, CFO at compareit4me.com. “However, with the average home insurance policy being sold on our platform amounting to less than AED20 per month ($5.44), we’re trying to get the point across that home insurance is actually cheap.”
Rawling added that home insurance is especially cheap when compared to the alternative of having to replace all belongings.
“We’re not trying to scaremonger by saying that your belongings could be at risk of fire or water damage; we simply think that, given the numbers, it’s a no-brainer to be covered in case anything does happen to your home,” he said.
The analysis follows a recent survey from Qatar Insurance that found 91 percent of UAE residents do not have home insurance, with over a quarter of respondents citing the cost of home insurance as a key reason for not being covered.
Meanwhile, 31 percent said they did not know enough about home insurance to make decision on which policy to buy.
Follow us on
