With six major residential tower fires in the past 12 months and the recent Sulafa Tower fire in Dubai Marina, more than 80 per cent of expatriates are not covered by insurance, according to financial planning firm Guardian Wealth Management.
It is important for people to check their property and life insurance cover to remain protected in the event of a tragic accident, the firm says.
“Home and contents insurance are essential for homeowners and tenants alike as it safeguards property and valuables. However, we estimate that almost 80 per cent of expats are not protected and that is a frightening statistic” says Hamzah Shalchi, Regional Manager at Guardian Wealth Management.
“Often in home countries this type of insurance is mandatory or automatic but in this region it is often not thought about and people aren’t always sure how to go about it. In reality it is a simple process and there are a number of providers who offer cover," says Shalchi.
The same can be said for life or critical illness insurance which is essential for families, not just in the event of a fire but any life-threatening scenario.
“If something were to happen to the main breadwinner of the family and there was no life insurance in place, the consequences could be drastic."
“Outgoings such as school fees and the mortgage/rent will still need to be covered or if the family chooses to repatriate after the death, how are they going to pay for this once the main wage is gone? Therefore, it is essential that UAE residents look into the best policy for them and their family and seek expert financial advice”.
The process of obtaining life insurance is relatively straightforward with a simple questionnaire and medical assessment which determines the clients risk profile.
“Local life assurance policies adhere to local laws and in the case of the UAE, Sharia law. This means that in the event of a death proceeds will go to beneficiaries within the UAE and may be distributed in ways outside of the persons wishes. In offshore policies payments can be made into offshore accounts or in the home country and distributed as they see fit," says Shalchi.
