Home Insurance
18 October 2007
With this year's Cityscape Dubai property
exhibition showcasing more than
500 exhibitors from over 30 countries, aspiring home-owners and property
investors are being spoilt for choice with the range of residential property
available.
This growth in
supply is being outpaced by demand for property, with the rising population
keen to find homes across the region. In the UAE alone, according to the 2005
census, more than 60 percent of the population is between 20 and 40 years old,
which is the prime demographic for first-time homeowners.
Countries like
However, while
these factors suggest a sustained property boom, the long-term stability of the
property market could be compromised without greater awareness of the
importance of home insurance, according to experts.
Property booms in
other markets have typically also created rises in demand for home owners'
insurance, which covers the cost of the home in the
event of incidents like fire and water damage, and home contents insurance, which
covers the costs of replacing personal possessions.
However, home
insurance penetration rates are less that 5 percent in some GCC countries. This
suggests a significant number of under-insured and uninsured properties across
the region.
"Given the
increasing availability of desirable properties and the number of new home
owners within the region, it is essential that there is increased awareness of
the importance of home insurance," said Mahmoud Nodjoumi, owner and CEO of
Nexus.
"The home is
often a family's most valuable asset and also a source of stability for the
future, so protection for that asset should be a top priority," he added.
Economists
typically position insurance as one of the "four pillars" of a stable economy,
along with social security, savings and employment, so the shortfall in
insurance investment in the region could pose a long-term problem.
A growing range
of home owners and home contents insurance is becoming available within the
region, with companies like Nexus actively working with international providers
to increase the level of choice.
The company is
also engaged in an initiative with the