Torch Tower residents affected by a fire that ripped through the high-rise on February 21 are being offered financial respite as the insurer and appointed loss adjuster for the Dubai Marina residence announced it is considering making advance payment to affected homeowners ‘to reduce their financial hardship’.
Oman Insurance Company (OIC) has stated it the move is subject to certain conditions that need to be met.
Following the fire that broke out in the building in the morning hours on Saturday, an indicative 81 apartments out of 676 units are potentially unfit for habitation pending official confirmation by the Dubai authorities; this number is down from the 101 apartments initially said to be affected.
The property insurance contracted by the Owner Association to protect the Torch Tower’s owners contains two supplemental provisions: Cost of Alternative Accommodation and Loss of Rental Income cover.
The first one compensates owners who live in their property for reasonable, additional cost of living under a new roof whilst their home is uninhabitable.
The second one indemnifies the owner landlord for loss of rent when the leased premise is uninhabitable.
According to OIC, both covers are payable when the extent of loss has been established and the owner is back in his/her property making compensation only payable once the property has been repaired.
Explaining the position, Patrick Choffel, CEO of OIC, said: “We understand that some Torch Tower’s owners have been placed in a position of financial pressure by this unfortunate fire.
“In order to provide a degree of immediate financial relief to affected owners, we have decided that in this instance, advance, staged, payments shall be made in respect of Cost of Alternative Accommodation and Loss of Rental Income.”
The interim relief will start for an initial three month period with the presentation of appropriate documentation.
Balaji Ganapathy, SVP Head of Non-Motor Claims at OIC explain: “For the Alternate Accommodation, we are requesting owners to provide the Loss Adjuster team with their title deed, passport and visa copy, the new accommodation tenancy contract and proof they paid for it.
“For the Loss of Rental Income, we will need the title deed, passport and visa copy of both owner and tenant, a copy of the original Torch Tower tenancy contract, and proof they reimbursed the tenant part of his/her rent.
“Any payment will be subject to the terms and conditions of the Policy.”
He added: “Any calculation of loss will be calculated on a pro rata basis and the covers will cease as soon as the apartments become both habitable and accessible.”
OIC stated it is liaising with affected owners via Torch Tower’s Kingfield Owner Association Management Services.
Earlier, under the ‘Emergency Accommodation’ provision, the Gloria hotel, Media One hotel and the Marriott hotel were contracted to provide the affected residents and owners a place to stay up to seven days from the date of the fire.
On February 21, a fire broke out in the 87-storey Torch Tower at 1.49am on the 50th floor of the building, according to the Dubai Civil Defence report, which gradually spread upwards; however, due to the high winds and a storm on the night, falling debris started a second blaze on the front facade of the tower, originating on the 38th floor.
As the firefighters battled the two blazes, building security evacuated the 676 apartments, with no loss of life.
Nearly 100 officers were involved in battling the blaze.
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Torch Tower fire update: Financial relief for residents
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