After the 2024 UAE Floods insuring your home is no longer just an option, but is a necessity

In 2024 the UAE suffered a once-in-a-generation flood. For many homeowners, this has been a wakeup call, as their homes were rendered uninhabitable in places like Mudon and Furjan. GIG was proud to be able to help so many of our insured customers, quickly transporting families to safety and securing replacement accommodation. However, with fewer than 1 in 20 homes insured, this leaves over 1 million homeowners and tenants at risk of severe losses. 

The flooding in the UAE seemed so impressive because it was so rare and unexpected. 

The story of the Dubai floods went global with satellite images showing whole neighborhoods underwater, videos of Airplanes landing into a lake at DXB, first responders riding Jetskis to rescue trapped families and even a Rolls Royce floating down the Sheikh Zayed Road. 

To most outsiders this flood was shocking as the UAE is a desert, right? It never rains.  

Well, not quite. It more or less always rains in January and February.Older Gulf residents will remember the severe floods in the early 80’s when parts of Khalidah were so deep people needed to use boats. Or any of the 43 Tropical Cyclones that have battered Oman. (Remember Gonu in 2007?) 

And while there is some debate as to how much ‘seeding’ led to the flooding (Answer : it didn’t), the simple issue is that most urban centers like Dubai and Abu Dhabi (which are built up and low lying) are simply unable to handle a year’s worth of rain falling in 24 hours. 

The UAE’s response to the floods has been exceptional. 

Unlike in the UK or US, where Government intervention after a disaster is often slow and uncoordinated; in the UAE hours before the flooding, thousands of pump trucks were already dispatched. Within days the Ruling Council had distributed AED 2 billion to families who had suffered. And by June, Sheikh Mohammed had signed off on an $8b plan to build an advanced new Stormwater Drainage system to mitigate this problem in the future. Insurance Regulators applied pressure to Insurance companies to expedite claims (At GIG, we removed the need for a Loss adjuster audit before honoring claims).

Compared to elsewhere in the world, the UAE is far, far safer from natural disasters 

The UAE is one of the safest countries on the planet. Spare a thought for the hundreds of thousands of families in the USA - each year they suffer $150 billion of claims from hurricanes, tornadoes, earthquakes, ice storms, floods and wildfires. Every year in India, the monsoon season results in severe flooding. Even, central France, the UK and parts of Germany are all inundated regularly. 

So, why are so few of us insuring our homes in the UAE? 

Excellent civil defense, building regulations and infrequent natural disasters. It is a paradox that living in Emirates feels so safe – and there is so little petty theft, that we feel invulnerable. Until the Flood, of course reminded us all how vulnerable how. 

Home ownership in the UAE is relatively new : The biggest driver to Home insurance is home ownership. It makes sense because your home is your largest ever investment. In places like the UK and France, well over half of adults own their own home and over three quarters of them have building and contents insurance. Why? Because subsidence, a fire or a flood can cause millions of dirhams of loss to your investment. Insurance protects you. 

Tenants incorrectly assume that it is only their possessions that are insured. But, as a tenant you are responsible for any and all damage. And its not just the security deposit at risk - set a fire accidentally in the flat you rent– and you can be on the hook for millions of dirhams of legal costs, for starters. 

Final thoughts 

“If you own or rent your home in the UAE you should buy home insurance cover immediately. This is a relatively low cost cover and it provides protection against the annual rain and fires that are a part of life here in the Gulf. Whether you choose GIG or some other insurer, I can’t stress that this should be a priority.” 

“The Floods of 2024 is why GIG exists. Protecting UAE residents, their homes, families and investments when the unthinkable happens is at the heart of an Insurance Company.“ Franck Heimberger, Head of PL GIG.