Property Insurance

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.