In the spring of 2024, Dubai and other emirates faced a rare natural phenomenon, a massive flood, which local authorities called a “once in a generation” event. In just a few hours, streets turned into rivers, cars disappeared under water, and entire residential districts like Mudon and Furjan became uninhabitable. For many people, it was the first moment of realization: without home or car insurance, even ordinary rain can become a financial disaster.
Housing And Tenants: Real Vulnerability
Before 2024, fewer than one in ten homes in the UAE were insured, with estimates placing coverage at around 6%. The devastating floods that year became a turning point, pushing more residents to recognize the risks. Today, the number of insured homes has increased compared to the period before 2024, yet many families still remain without full protection. While confidence in low crime rates and rare natural disasters once kept people from buying coverage, the reality is clear: a home is the largest investment in most people’s lives, and without a uae insurance policy, its loss can still lead to long-term financial hardship.
Tenants, too, often believe they are responsible only for furniture or personal belongings. In reality, liability extends to the property itself. A single fire or burst pipe can result in millions of dirhams in lawsuits, with the tenant in the defendant’s chair.
Cars And Financial Consequences Of Rain
Auto insurance quickly became a major topic. Comprehensive car insurance policies do cover flood damage, but there are important conditions. If the car was parked and then flooded, claims are usually honored. If the owner attempted to drive through a flooded street, compensation may be rejected.
The deductible ranges from 250 to 2000 AED depending on the car insurance policy. A police report or a “To Whom It May Concern” certificate is mandatory. In Dubai, this certificate costs 95 AED, while recovering a lost license plate costs 70 AED. In Sharjah, such documents are issued free of charge in the event of natural disasters.
Business And Financial Losses
Companies also suffered. The damage to buildings, equipment, and inventory was heavy, but the bigger challenge was the shutdown. Business interruption insurance is purchased separately, and for many entrepreneurs this was the first time they learned about such coverage. Even a few days of forced closure resulted in significant losses.
Government Response And Infrastructure Projects
The reaction from authorities was immediate. Hours before the peak of the disaster, thousands of pumping machines were already working in the streets. Within days, 2 billion AED was allocated to support families. By June, an $8 billion storm drainage project was approved to protect cities in the future.
For comparison, the United States loses about $150 billion annually to natural disasters. While rare in the UAE, the experience of 2024 confirmed that preparedness cannot be ignored.
Law, Disputes And Consumer Protection
Filing claims quickly is essential. Delays or lack of proper documents almost always lead to rejection. Insurance companies require photos, videos, and police reports. If an application is rejected, the client has the right to appeal. In 2023, the UAE established Sanadak, the region’s first independent ombudsman, tasked with ensuring transparent and fair resolution of insurance disputes.
The flood of 2024 was both a shock and a lesson. The UAE remains one of the safest countries, yet natural disasters can shatter daily life overnight. Homeowners, renters, businesses, and drivers must rethink their approach to insurance. Flood and natural disaster coverage is not optional, it is a necessity. Ignoring the issue can lead to consequences far greater than the cost of a policy.
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