Saudis not insuring homes despite floods

Few Saudis are insuring their homes despite the recent floods and the relatively low-cost SR 5,000 annual premium per house on average. Sheikh Khaldoun Barakat, chairman of the board of directors of Arab Reinsurance Company, said current prices are “reasonable” and based on a house’s location, preparations to avoid risk and other factors.
He added companies and shops need to have insurance because there is a high risk of heavy losses if an accident or disaster occurs. Homeowners and businesspeople in Saudi Arabia are unaware of the importance of insurance against disasters. according to Barakat. Insurance experts said that government and the private sector should raise awareness of the importance of housing insurance.