Home insurance premiums in the UAE have increased by 10-15% in the wake of the devastating floods from record rainfall in April 2024.
The disaster caused widespread damage and disruption to the UAE during the heaviest rain since records began in 1949. This prompted many insurers to reassess their risk models, especially for villas and low-lying residences, reported the newspaper The National.
“As a result, we’ve seen a more cautious approach to underwriting and some changes to premium structures and policy coverage. On average, home insurance premiums have increased by 10 to 15%,” Policybazaar.ae chief executive Neeraj Gupta told The National.
“The actual hike for an insured home varies based on property location, structure type and claim history. Properties with prior claims or lacking proper drainage systems have seen even higher adjustments,” Mr Gupta said.
He said the main damage was caused by water ingress, the term used when water from outside enters a property, which affected both the structure of homes and the contents inside.
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