A survey by Fund Advisors among respondents living in rented accommodation in Dubai has shown that 81 percent have no contents insurance. So events like theft, fire or damages by way of other incidents have no coverage.
Furthermore, the UK’s daily newspaper The Telegraph found that, when insuring their contents, people often valued their clothes and valuables on worth at the point of valuation and not what they would be worth if bought new. The Telegraph also found that the most common items that are missed when insuring homes are often the most obvious, such as carpets, furniture, pre-paid rent and security bonds.
But, as Fund Advisers’ survey showed, the under-insured parties of Dubai don’t stop there. Over 90% of clients surveyed do not hold sufficient life cover. This not only gives a dangerous false sense of security but also leads to a gross over-estimation of the capabilities of the life insurance already in place.
Fund Advisers found that, relative to the number of dependents and when insuring their life, parties can be heavily under-insured.The survey also found that 72% of clients surveyed had life cover but no critical illness cover or income protection.
Spencer Lodge, MD, Fund Advisers, has said that many people think they can’t afford life insurance or critical illness cover. However, he points out that “The consequences are so catastrophic if anything happens and you aren’t covered, how can you afford not to have it? You are five times more likely to suffer a critical illness before you reach 65 than die. Here in the UAE you are entitled to 45 days paid sick leave, what happens to you and your family after that short time?”
