UAE residents are failing to insure their homes

Only one in 10 residents in the UAE has opted for home insurance, leaving the majority of the population susceptible to major losses or damages, experts at InsuranceMarket.ae have said.

Insights from InsuranceMarket.ae show that 58 per cent of home insurance claims came from damage or loss of personal belongings, with 70 per cent of them made on damages, and 30 per cent on loss of personal belongings. In addition, 83 per cent of claims made against personal belongings, were for loss or damage to portal electronic devices, primarily mobile phones, with jewelry accounting for the remaining 17 per cent of claims.

Claims on damages to building and damage to contents made up 21 per cent respectively, with 90 per cent of building damage claims due to water leakage. Accidental damage makes up 57 per cent of all contents claims. One home owner even claimed Dh900 for spoiled frozen food.

Avinash Babur, chief executive officer at Insurancemarket.ae, said: "A common misunderstanding of home insurance is that only individuals who own their apartment or villa can purchase this type of insurance. Tenants often wrongly assume their home contents are covered under the landlord's or building's policies. However, tenants who rent an apartment or villa can - and should - purchase home insurance to protect their contents, such as your furniture or home electronics, and personal belongings like watches, jewelry and mobile phones."

"Another common misunderstanding about home insurance is that it is expensive, which is not the case. Home insurance premiums, across building, contents and personal belongings, make up only a small percentage of the total value of each item. For example, building insurance premiums range from 0.02 per cent to 0.07 per cent of the value of the property. So, when compared to the value of your assets and possessions, buying home insurance makes sense, offers peace of mind and undoubtedly outweighs the amount you would otherwise spend replacing items or undertaking repairs paid for out of your own pocket," he said.

- business@khaleejtimes.com