A guide to home insurance for buyers in Dubai

Thinking about buying your first home in Dubai?

We’ve also got the world’s number one property market on our radar. With the finest lifestyle, attractive returns, high-end living, and ultra-luxurious amenities - there really is a lot to choose from in Dubai.

Home insurance then definitely must be on your mind too.

If you have, then this guide is perfect for you. And if you haven’t yet, then we’ll also list down why it's important to get home insurance in Dubai.

What is home insurance?

In simple terms - Home insurance is a type of property insurance that covers any private residence.

Just like health insurance, it combines various personal insurance protections, including losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner.

Plus, it may also provide liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

What are the different types of home insurance policies in Dubai?

There are two main types of home insurance policies:

Building Insurance: This covers the structure of the property itself, including fixtures and fittings and it protects against risks like fire, flood, and any natural disaster damage.

Contents Insurance: This covers the belongings inside the home, such as furniture, electronics, clothing, and other personal items.

Some comprehensive policies may combine both building and contents insurance, offering extensive coverage for homeowners, and this is usually what everyone opts for.

Who should get home insurance?

Home insurance is essential and highly encouraged by the government for individuals and residents such as:

Homeowners: Whether you live in the property or rent it out, having home insurance is crucial to protect your investment in the long-term, especially given that a majority of homeowners are now mortgage buyers or foreign investors.

Landlords: If you rent out your property, a landlord's insurance can cover building damage and offer liability coverage, ensuring you're protected against any tenant-related risks.

Tenants: While the landlord’s insurance covers the building, tenants may need content insurance to protect their personal belongings within the rented property, this includes anything from furniture, appliances, and any other personal belongings within the house.

Mortgage Lenders: Many times mortgage lenders in Dubai require homebuyers to have a home insurance policy in place as a condition of the loan that they are providing, as this is to protect the lender’s money invested in the property.

Why do you need home insurance?

It's important to have insurance, given after the floods in the UAE in April this year, it’s always better to be safe in such cases plus the benefits of having one are:

You are protected against natural disasters: In Dubai, although you are relatively safe from many natural disasters, it is not entirely risk-free and the floods this year were a testament to that.

However, events such as fires, floods, or storms can cause significant damage. Home insurance provides financial protection against all these unexpected events.

You are financially protected: Purchasing a home is a substantial investment, and ensuring this is always protected is a major benefit of home insurance.

Liabilities are covered: Accidents can happen, but did you know that if someone is injured on your property, you could be held liable? The benefit of home insurance is that it offers liability coverage, helping to cover legal fees and medical expenses.

Peace of mind and protection: You can rest assured knowing that your home and belongings are protected provides peace of mind. You can live comfortably without the constant worry of potential risks and their financial implications on your home.

Mortgage requirements are managed: As previously mentioned, many mortgage lenders in Dubai require home insurance as a condition of the loan. Ensuring you have the appropriate coverage can facilitate a smoother mortgage approval process for you.

Choosing the right insurance policy

When selecting a home insurance policy in Dubai, it’s important to consider the following factors:

Coverage level: Determine whether you need building insurance, contents insurance, or a combination of both. And you can do this by assessing the value of your property and belongings to get a better understanding.

Drop our in-house experts a line for a free property valuation.

Policy exclusions: Depending on the type of insurance you are looking at, make sure you understand what is not covered by the policy. Common exclusions might include wear and tear, damage from pests, or certain natural disasters.

Calculate the excess amount: This is the amount you will need to pay out of pocket before the insurance coverage kicks in. Ensure you choose a plan with an excess amount that you can comfortably afford.

Add-ons: Consider any additional coverage you might need, such as accidental damage cover, home emergency cover, or personal possessions cover for items taken outside the home.

Insurance provider reputation: Choose a reputable insurance provider with a strong track record in customer service and claims handling so that you are protected no matter what.

Hope this guide was helpful!

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