Real estate insurance in Dubai

Real estate insurance in the UAE has its aspects, but in general, as in other countries, it is intended to compensate for possible losses from property damage. According to the legislation of the country, the developer is obliged to insure apartment complexes. At the same time, such insurance covers only structural elements, everything inside the apartment can be insured by the owner or tenant of the housing if desired. Private villas and property inside are also insured by the owner.

Not to dig deep into the specifics of insurance policies and not search for an insurance company, you can entrust the entire procedure to an agent of Mayak Real Estate.

Peculiarities of the insurance policy

If you decide to choose an insurance policy yourself, you need to study it carefully. What points are worth checking out:

  • first, find out whether the amount indicated in the document covers the cost of the apartment or your property;
  • read what conditions you need to fulfil and what documents to provide to receive payment in the event of an insured event;
  • pay attention to everything written in the fine print — often there is important information that the policyholder may not notice;
  • find out what additional benefits are available — the insurance company can provide temporary housing or reimburse rental costs if the policyholder’s apartment has become uninhabitable due to the occurrence of an insured event.

If you are worried that you may miss important points in the insurance policy, contact your insurance agent. A specialist with extensive experience knows all the aspects and will be able to select the best program for you.

Choosing an insurance company

There is a fairly large selection of insurance companies in the United Arab Emirates. Well-known insurers include MetLife UAE, Arabia Insurance Company, AXA Insurance, Emirates Insurance Company and more than 40 insurance organizations.

If you have no experience in insurance, it will be quite difficult to pick a specific company, because each of them offers its programs. Special services on the Internet will help solve the issue, you can also compare the offers of insurers. There is a form on the website in which you need to specify the main introduction: the owner or tenant, the approximate value of the property, and contact details. The service will automatically select programs that fall under these conditions.

When choosing an insurance company, also check its rating, financial potential and reputation, and find reviews. If in doubt about whom to contact, use the services of an agent.

The cost of real estate insurance

To ensure real estate or other property in Dubai and generally in the UAE, you do not need a large budget. These costs are quite feasible for everyone living in the Emirates.

The insurance of a residential building takes about 0.1% of the calculated insurance cost per year. If the building is located on an artificial island, the costs will be slightly higher: there are higher risks of property damage due to possible natural disasters.

Personal property insurance costs approximately 0.5% of the total cost of insurance coverage for the year.


01. Who is obliged to insure housing when renting it out?

If the property is rented out, the question may arise, who is engaged in insurance whether it is the owner of the apartment or the tenant? According to the legislation, the owner is obliged to insure the object only if a mortgage loan is issued for it. If desired, he can pay for the insurance of the apartment, while it is possible to include in the policy an item on compensation in case of non-payment of rent. For things that are inside a house or apartment, it is best to insure the tenant.

02. How do I get paid when an insured event occurs?

To receive an insurance payment, you will have to prove that the property is damaged. It is best, even before insuring housing or other property, to take photos of it in proper condition, so that later you can clearly show the damage. If you insure expensive items, keep receipts for their purchase in a safe place. Receipts can also be replaced by a card statement if you bought these things personally.

03. Do I need to insure real estate when applying for a mortgage?

When receiving a mortgage loan, the bank will require the borrower to take out insurance not only for real estate but also for life. In most banking institutions, the policy fee is charged once a month. Agents recommend that when applying for a mortgage, you also pay for insurance against critical illnesses. In case of inactivity, the borrower still has the opportunity to repay the loan.

04. Is it possible to insure real estate off-plan?

If you decide to buy residential or commercial real estate at the construction stage, you may question whether it is realistic to insure the purchased object from the bankruptcy of the developer or the construction stop. Such insurance is not provided in the United Arab Emirates, but do not worry, as there are laws that protect investors’ money. The state strictly controls the activities of construction companies, and investors’ funds are not received by the developer until the object is fully completed.

05. How much does it cost to insure an apartment in Dubai?

The cost of an insurance policy for homeowners in Dubai is about 0.1% of the total cost of the apartment. For example, if you are the owner of a 1-3-room apartment in the UAE, then you will spend from 55 to 270 dollars a year on insurance. Each case is individual, so the amount is indicated approximately.

06. Is it really possible to get a payment for damaged housing if no one lived in it?

When applying for insurance, carefully study the policy. It may indicate that the insurer cannot compensate for the damage if no one has lived in the apartment for 30 or 60 days.

07. What is third-party liability insurance?

If there is a fire or flooding in the apartment, and the damage will be caused not only to your property but also to the neighbors, such insurance will help compensate for losses. Without registration of civil liability insurance, you will most likely have to pay a tidy sum to your neighbors.