It’s over a week since the fire at The Torch in Dubai Marina saw 1,000 residents flee in the middle of the night. But while work is being carried out to repair the damaged 87-storey building, one of the world’s tallest residential towers, the attention must surely turn to home contents insurance. The UAE penetration rate for home contents insurance is low at around 6 per cent meaning only a handful of the tower’s residents would have had their belongings insured against any damage.
While the majority of those living in The Torch are unaffected, residents of Tamweel Tower, which was gutted by a fire in November 2012. know only too well the ramifications of not protecting their belongings against fire, flooding or burglary. Repairs are yet to get underway at the 34-storey building in Jumeirah Lakes Towers, where many lost their entire personal possessions as well as the home they lived in. Owners there are forced to rent while negotiations continue, an owner has told The National.
With that in mind, here, David Harris, director – Affinity & Direct, UAE and Bahrain at RSA Insurance, explains the ins and outs of home contents insurance, revealing that cover can start from as little as Dh21 per month:
Have you noticed an increase in home insurance enquiries since the Torch fire?
We always notice a surge in enquiries following unfortunate incidents. For example, there was a 400 per cent increase in enquiries and 90 per cent increase in policy purchases following the Torch fire. However, it is often only in the immediate period following these events that residents are willing to purchase policies, but this attitude seems to wane over time. Unfortunately, we see that the GCC region still exhibits low penetration levels of home and content insurance. While 76 per cent of residents in the UK have some sort of a home insurance policy, this is shockingly low at around 6 per cent for UAE residents.
Why don’t people bother with home insurance in the UAE?
The reason why home and content insurance penetration rates across the country remain far lower than more mature markets appears to primarily be based on different cultural attitudes. While Western expats are aware of these products, the highly-transitory nature of this demographic means that they see their stay in the UAE as temporary, due to which they do not think it is necessary to buy home insurance.
With regards to the South Asian and Arab expats, we see that there is a lack of awareness for these products and for their importance, which ultimately leaves many of their precious contents exposed in times of emergencies. Additionally, as a large proportion of the UAE residents are not homeowners, they often opt to disregard the need for home insurance.
What should a good home contents insurance policy cover? And how much is the average home insurance policy?
RSA, along with a majority of other companies, offer two types of products that provide ample cover for building, contents, and personal possessions. The basic home insurance policy provides cover against fire, natural calamities, and damages from third parties up to a certain limit. For those not familiar with home and contents insurance, we have developed the packaged product. With this policy, people do not have to disclose the list of their contents and personal possessions, but are provided a total coverage amount up to a certain extent, with the cheapest package being Dh21 per month - less than Dh1 per day. At the same time, those looking for more extensive coverage can apply for Declared Sum insurance, which allows customers to define their list of items to be protected and estimate their value.
How much cover does the average person realistically need?
We have seen that people realistically need to be covered across three different areas. The first is coverage for the building: that is protection for the structure of the residence if someone owns the property. The second is contents insurance for anything immovable inside the house, for example furniture; and the third is for personal possessions, which includes items that we carry around outside the homes such as mobile phones, watches or jewellery. This provides them cover against fire, natural calamities, and other such unexpected events. It also covers people against accidental damage such as burst pipes, which is a fairly common occurrence. One is also protected against liability to their landlords, neighbours or other third parties up to a certain limit.
What happens if you have no home contents insurance?
Although most UAE residents are not homeowners, there should be no room for regrets when it comes to insuring their homes and their most precious belongings. Expats, who constitute the majority of the UAE population, travel extensively and often leave behind an unattended home and valuables that are exposed to theft or other damages. Home insurance is meant to protect homeowners from potential accidental damage to the house as well as against the loss of any items inside the home or carried outside the home. While we see that most people tend to reassure themselves that it is unlikely that they would be victims of unfortunate events, no one is completely safe and unforeseen events can always arise. People can overcome these risks by applying for home content insurance and securing their peace of mind.
What about if you live in a tower block - wouldn’t the building have a policy that would cover you?
One of the most common misconceptions we see is that people do not think they have to insure their homes if they are rented. The building’s insurance policy only covers the structure; not the actual content inside the home. Opting for home and content insurance is also essential as it covers them for any liability towards their landlords or neighbours brought about by any accidents.
What do people typically miss out from their policy?
Customers need to primarily be aware of the extent of the coverage they have and make sure their possessions’ inventory is updated. It is also very important not to make any incorrect assumptions about what damage will automatically be covered by the policy. Certain areas that customers should look out for when examining their package includes business equipment around the house, tenants’ liability, single item limit for precious belongings, cash kept at home, freezer contents, and home emergency coverage among others. Insured individuals also have to understand that their policy will only cover the repair or replacement of damaged or lost items according to the current market value. Additionally, since UAE residents travel extensively, they may also need to check what their insurer’s limits are in terms of how long a property can be left unoccupied and still remain protected.
And how has RSA helped policyholders living in the tower?
Immediately following the fire, we tasked our customer service team to call 17 of our customers who happened to be residents at the Torch to inform them that they were entitled to alternative accommodation should they need it. In this manner, we always look to keep our customers’ well-being at the heart of our business.
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Europe's top EV producers
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- Netherlands (20%)
- Sweden (19%)
- Austria (14%)
- Germany (14%)
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- United Kingdom (12%)
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Source: VCOe
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Power: 218hp (Cooper and Aceman), 313hp (Countryman)
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
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Investment raised: $4 million
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
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Harvard University Press
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
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In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
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Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
Profile Idealz
Company: Idealz
Founded: January 2018
Based: Dubai
Sector: E-commerce
Size: (employees): 22
Investors: Co-founders and Venture Partners (9 per cent)
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
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COMPANY%20PROFILE
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'Midnights'
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The%20trailblazers
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THE SPECS
Engine: 3.6-litre V6
Transmission: nine-speed automatic
Power: 310hp
Torque: 366Nm
Price: Dh200,000
MOTHER%20OF%20STRANGERS
%3Cp%3EAuthor%3A%20Suad%20Amiry%3Cbr%3EPublisher%3A%20Pantheon%3C%2Fp%3E%0A%3Cp%3EPages%3A%20304%3Cbr%3EAvailable%3A%20Now%3C%2Fp%3E%0A
SHALASH%20THE%20IRAQI
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
ENGLAND SQUAD
Joe Root (captain), Dom Sibley, Rory Burns, Dan Lawrence, Ben Stokes, Ollie Pope, Ben Foakes (wicketkeeper), Moeen Ali, Olly Stone, Chris Woakes, Jack Leach, Stuart Broad
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The Saudi Cup race card
1 The Jockey Club Local Handicap (TB) 1,800m (Dirt) $500,000
2 The Riyadh Dirt Sprint (TB) 1,200m (D) $1.500,000
3 The 1351 Turf Sprint 1,351m (Turf) $1,000,000
4 The Saudi Derby (TB) 1600m (D) $800,000
5 The Neom Turf Cup (TB) 2,100m (T) $1,000,000
6 The Obaiya Arabian Classic (PB) 2,000m (D) $1,900,000
7 The Red Sea Turf Handicap (TB) 3,000m (T) $2,500,000
8 The Saudi Cup (TB) 1,800m (D) $20,000,000
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
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