Source of Zen Tower blaze found: Fire insurance market on fire
Last week we reported on the fire that engulfed Zen Tower in Dubai Marina, on May 13.
Reports today say that the fire began in a ground floor kitchen, according to Civil Defense officials.
Local media reported that rescue chief Brigadier Khalifa Buflasa noted that a flammable substance caught fire in the kitchen of a business on the ground floor and spread quickly due to high winds.
The first five floors of the building were the most damaged, although flames also reached higher floors during the incident.
Civil Defence officials have not specified which business the fire started in, and investigations are still ongoing.
According to The National, Ahmed Mohammed Ahmed, the head of fire investigations at the Dubai Police forensic department said that investigators are looking into the possibility that the blaze was caused by “carelessness”.
Hundreds of residents were evacuated from the building during the incident and were later allowed to briefly re-enter the premises to retrieve some of their personal belongings.
OFF THE ROOF
Comparison website, yallacompare, has seen a “100% increase in the number of home insurance policies being sold since the Zen Tower fire in Dubai Marina on Sunday,” CFO, Jonathan Rawling said.
Rawling said it is common to see a surge in residents buying insurance following a fire incident.
“That’s usually the way that things play out after a fire is reported. People see the news coverage, and for some, that’s enough of a push towards getting their belongings covered,” he said.
Nexus Insurance Brokers have also seen a surge in homeowners purchasing home and contents protection, although they assume it to be short-lived, following the similar trend as past occurrences.
“We are definitely busier than usual with inquiries for home insurance since news of the fire, and this is a pattern we have observed after similar incidents in the past,” said John Waldron, head of private clients at the firm.
A 4-week spike
“When a fire happens, you do see that immediate response, and there is a brief surge in new business inquiries. After the fire in the Torch Tower last year, we saw a massive spike in inquiries coming into the market for maybe a three-to-four week period, but then the interest essentially reverts to typical volumes,” he added.
Waldron pointed out that the number of home insured people in the UAE remain remarkably low by international standards.
Yallacompare’s Rawling also displayed concern for low home insurance rates in the UAE, stating that only 11% of UAE residents are signed onto a home insurance policy compared to around 70% penetration rates in Europe, according to research by the website.