Recent findings from Zurich have revealed that the current trend is headed in a downward direction.
It took a massive fire in a Dubai residential tower, last year, to truly draw the attention of property owners in the United Arab Emirates to the importance of homeowners insurance, but it looks as though the climbing trend has come to an end and is starting to drop once more.
A recent study has shown that over 9 out of every 10 people don’t have their homes covered.
The homeowners insurance study was commissioned by Zurich and showed that 94 percent of the residents of the UAE are unprotected and are, therefore, risking considerable financial losses if they should ever experience unexpected perils such as a storm, flood, or fire that damages their property, structure, or possessions.
This research was conducted in October and showed that the vast majority of people don’t have homeowners insurance.
The study included the participation of 1,009 people who were residents of the UAE. Among them, 94 percent did not have contents or homeowners insurance to protect them against damage to their homes or possessions. The penetration of this coverage was at its lowest among tenants, when compared to actual property owners. Among renters, only a tiny 4 percent had coverage for the contents of their homes. Among the actual property owners, the penetration rate was closer to 22 percent.
According to experts in finance and homeowners insurance, one of the primary barriers to penetration of the coverage is in the misunderstandings and misconceptions that the residents of the UAE actually have about it. This causes them to fail to protect their homes as well as their appliances, furnishings, electronics, and other valuables.
Among the most common misconceptions regarding homeowners insurance and contents coverage is among tenants, who think that their landlords will be liable in the case of a fire or water damage that damages possessions. Many consumers also feel that they don’t have possessions that are valuable enough to insure. Beyond that, there is also a common belief that coverage is prohibitively expensive when, in truth, it is much less than people think.