More than six out of 10 (61 per cent) of Dubai residents do not have home insurance, according to a recent poll conducted by MoveSouq.com, a Dubai-based online home services marketplace, and RSA, a leading provider of insurance services in the region. The results were based on an online survey of more than 200 employed respondents in Dubai.
Among home owners, adoption of home insurance is substantially higher as two thirds (66 per cent) have an insurance policy in place to cover their home and contents. However, only one quarter (25 per cent) of renters feel the need to have home insurance coverage. The survey also showed that 67 per cent of apartment buildings and 50 per cent of villas in Dubai are uninsured.
MoveSouq.com CEO Bana Shomali commented: "Given the widely reported incidents of apartment building fires in major residential areas of Dubai, it is quite surprising that so many homes remain uninsured even when basic content insurance is widely available and affordable."
On the other hand, health and car insurance are widely adopted in Dubai. Over nine out of 10 (91 per cent) employed Dubai residents reported they have medical insurance, while all respondents that drive confirmed they have motor insurance. "The relatively higher uptake of these types of insurance should come as no surprise as they are mandated by the government," added Shomali.
The survey also revealed that some of the other insurance policies with low penetration levels among employed Dubai residents were: travel insurance (36 per cent), personal accident insurance (40 per cent), and life insurance (45 per cent).
Commenting on these results, RSA's Sales & Marketing Director, David Harris, said: "While it is not surprising to see that the uptake of home content insurance remains low in Dubai, it is alarming that it is used the least compared to other types of insurance with only three out of 10 saying they have applied for it. These penetration levels are far lower than more mature markets in the West and can be attributed to the prevailing perception among a majority of residents that home and content insurance is not necessary or that it is not worth the expense.
"Furthermore, we have seen that people are often only likely to consider this type of insurance once the damage has already been done. At RSA, we are committed to changing these perceptions and educating the community about the value of these services in protecting their valuable possessions from unforeseeable circumstances and in securing their peace of mind."
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