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Home Insurance: How AED 220 could save you at least AED 28000?

December 2016

December 19, 2016 | 12:10 | Dubai

With an analysis from compareit4me.com, the Middle East’s leading finance comparison site, suggesting that it would cost at least AED 28,000 to re-furnish the average one-bedroom apartment in the UAE, residents are being urged to understand that it is considerably less expensive to have their homes covered by home insurance.

 

The average home insurance policy sold on compareit4me’s insurance comparison platform costs just AED 220, meaning that, for the cost of replacing an entire apartment, a UAE resident could enjoy over 127 years of comprehensive protection for their belongings.

 

The cost-analysis of replacing the average apartment 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. Even making allowances for the fact that many people buy major household items second-hand, compareit4me’s analysis suggest that it may cost up to AED 3,460 just to re-furnish the average kitchen. For the average living room, where expensive electronic gadgets are often kept, that number rockets up to AED 15,000.

 

“People are often deterred from taking out home insurance because there’s a prevalent myth that it’s expensive. However, with the average home insurance policy being sold on our platform amounting to less than AED 20 per month, we’re trying to get the point across that home insurance is actually cheap,” said Jonathan Rawling, CFO at compareit4me.com.

 

“Indeed, it’s especially cheap when compared to the alternative – having to replace all of your 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.”

 

The analysis follows a recent survey from Qatar Insurance suggesting that 91% of UAE residents do not have home insurance, with over a quarter of respondents citing the expense of home insurance as a key reason for not being covered. Meanwhile, 31% said that they did not know enough about home insurance to make decision on a policy.

 

“Those numbers confirm what we’ve all assumed – that your average consumer believes home insurance is expensive and complicated. However, home insurance couldn’t be easier to buy – by using compareit4me.com, you can choose between a range of insurers, and arrange coverage in less than 10 minutes by answering four simple questions about yourself. We’ll take care of the rest, and it will cost the same amount as a new toaster,” added Rawling.

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