Dubai’s real estate sector is highly lucrative and growing. Purchasing property in Dubai can be a highly profitable investment for people interested in moving to Dubai. Some people may even put down all their life savings to pursue a residence in Dubai.
In such cases, protecting your residential investment from damages and accidents becomes essential. The best way to do that is to purchase a comprehensive home insurance policy.
Therefore, this article discusses in detail how to choose and purchase a home insurance policy in Dubai.
Starting from the basics, let us understand two different types of home insurance in Dubai.
Types of Home Insurance in Dubai
There are two types of home insurance in Dubai. One pertains to the property itself, and the other relates to its valuable contents. Let’s take a look at them.
1. Building Insurance in Dubai
As the name suggests, building insurance covers your house’s physical structure, including foundation, walls, roof, fixtures, and other structural elements.
This type of insurance in Dubai covers damages like fire, earthquakes, explosions, natural disasters, and accidents that affect the structure of the building.
It also includes vandalism or any human act that damages the building. Building insurance is crucial as it protects your hefty property investment from unfortunate events.
2. Content Insurance
On the other hand, content insurance covers the valuable items inside your house. For example, if you have expensive jewelry, appliances, furniture, and valuable possessions, content insurance will cover theft, damage, or loss of items for various reasons.
Insuring the valuable contents of your house is as important as insuring the building itself.
Why Choose Home Insurance in Dubai? Benefits of Home Insurance in Dubai
Purchasing property in Dubai may cost you all your savings, and rebuilding it after a disaster can put a significant financial burden on you and your loved ones.
Therefore, whether you live in your home or rent it out, having a comprehensive insurance policy can protect your investment from accidents, natural disasters, and criminal activities.
The importance of home insurance in Dubai can be summarized in the following points.
- Financial Cover: Gives you financial cover to rebuild the house or replace valuable belongings in case of damage.
- Legal Cover: Home insurance provides you legal protection if an event causes unintended injury to a person on your property.
- Mortgage Conditions: Many mortgage providers in Dubai make it mandatory for homeowners to purchase home insurance.
What is Covered in Home Insurance in Dubai?
Generally, a comprehensive home insurance policy covers the following aspects for homeowners.
- Building: Coverage of the structural elements of your property, such as walls, floors, doors, windows, roof, windows, foundation, etc.
- Contents: Coverage of valuable personal belongings inside the home, such as jewelry, electronics, appliances, clothing, furniture, etc.
- Personal liability: Coverage if a person injured on your property sues you for damages.
- Alternate living expenses coverage: Provision of the cost of living in a different property when your property is temporarily unlivable because of damages.
- Medical payments to injured persons: Coverage of medical expenses to the person(s) injured on your property, regardless of who’s responsible for it.
Additional Coverage Options
Some insurance policies might also feature secondary coverage options, or you may purchase them as an additional benefit if needed.
- Coverage of high-value items: Specifically covers high-value items like expensive art, collectibles, antiques, and jewelry.
- Coverage for domestic workers: Provides cover to domestic workers if they get injured while performing their duties at your home.
- Coverage for pets: Provides cover if your pets are lost or injured.
What is not Covered in Home Insurance in Dubai?
A home insurance policy in Dubai also has some exclusions, and they are as follows.
- Damages by War and Terrorism: Home insurance in Dubai does not cover damage caused to your home by war and terrorism.
- Gradual wear and tear: The home insurance policy does not pay for your property’s gradual wear and tear.
- Intentional damage: The home insurance policy does not cover damages done intentionally.
What is the Cost of Home Insurance in Dubai? Dubai Home Insurance Cost
When you outline a budget to purchase a particular property, we recommend including the insurance costs you’re likely to pay in that budget. Different home insurance companies in Dubai have different rates, varying between 0.1%-0.5% of your property’s value annually.
To make things simpler, here’s a breakdown of typical insurance costs in Dubai.
Cost of Building Insurance for Single-family Homes
The cost of insurance for single-family homes is highly affordable. The premiums generally start around 0.1% of the home’s rebuild value. Rebuild value is the amount it would cost to rebuild your home if it were destroyed beyond repair.
For example, if the rebuild value of your home is AED 2,000,000, your annual home insurance premium would start at AED 2,000.
Cost of Personal Possession & Content Insurance
Generally, the cost for possessions and contents insurance begins at around 0.5% of the coverage value. Coverage value is the cost of your possessions/house contents per the market value.
For example, if you want to cover items with a coverage value of AED 100,000, you’ll have to pay an annual premium of AED 500.
Before purchasing a particular property, it is crucial to make an accurate valuation of all the possessions/house contents you wish to be covered.
- It is important to note that the values given here are just rough estimates. Actual premiums may vary depending on the insurance provider and the policy itself. Consulting a reputable home insurance company in Dubai will help you tailor a policy that accurately suits your circumstances, expectations, and needs.
Factors Influencing Home Insurance Costs in Dubai
Various factors may influence the home insurance rates in Dubai, such as
- The location and value of your property
- The type of coverage and features you choose
- Your personal claims history
- Presence (or absence) of security systems like CCTV, smart locks, etc., on your property
- Choice of the home insurance provider
Documents Needed for Home Insurance in Dubai
When purchasing home insurance in Dubai, you must submit specific documents related to you and your property. Submitting these documents is mandatory to make you eligible for an insurance policy.
You may need the following documents to purchase home insurance in Dubai.
a) Property-related Documents
You may need to provide the following documents related to your property:
- A valuation report assessing the current value of your property
- Architectural plans of the property
- Multiple photographs of the property showing its features and conditions
b) Personal Documents
You may also need to submit the following personal documents when applying for home insurance in Dubai.
- A valid passport or Emirates ID
- Proof of property ownership, such as the sales agreement or title deed.
c) Other Documents
Based on the insurance provider and policy conditions, you may also need to provide other documents, such as:
- List of valuable possessions: A complete inventory of all your valuable items inside the home with their estimated value.
- List of security measures: list and evidence of all the security systems such as smart locks, cameras, fire alert systems, etc.
- Additional documents: Your insurance provider may also require other documents related to the risk assessment of your property.
How to Choose the Right Home Insurance Policy in Dubai?
Consider the following factors to choose the right home insurance policy in Dubai.
- Property’s and Contents’ Value
First and foremost, go for a policy that entirely covers the value of your property and its valuable contents.
- Coverage Type
Different providers give you coverage for different aspects of your property. Make sure to thoroughly study the provisions and exclusions before making a decision.
- Budget
Compare quotes from top insurance companies in Dubai to find the best match that balances price and coverage.
How to Apply for Home Insurance in Dubai: The Complete Process
Here’s a step-by-step process of how to apply for home insurance in Dubai.
1) Get the Quote
Contact your preferred home insurance provider(s) to request a quote. They will initiate the process with a detailed assessment of your property and contents. Later, they will recommend different policies and pricing options based on your preferences.
2) Application Undersigning and Documents Submission
Once you decide to proceed with a particular provider and policy, they will ask you to submit a filled and signed application form with the required documents. Additionally, you’ll have to pay the premium to initiate your policy.
3) Evaluation and Approval
When your provider receives your application, they will start the property evaluation process. Once approved, you will be issued the relevant policy documents.
How to File a Home Insurance Claim in Dubai?
Contact your insurance company promptly when the damage occurs and explain everything in detail. Even though they will guide you through the claims progress, it’s better to keep the following information.
- Description of the damage
- Time and date of the event
- Your policy number
- List of damaged items with their estimated value
- Other relevant documents like fire department reports, police reports, repair estimates, etc.
Top 5 Home Insurance Companies in Dubai
Here are the top 5 home insurance companies in Dubai to make the process easier. We recommend getting quotes from each provider to pick the best policy for yourself.
1. Insurancemarket.ae
Insurancemarket.ae is a trusted name for comprehensive home insurance policy in Dubai. Established in 1995, they have been one of the most popular providers in this niche.
You can contact them through their website or ask their representatives for a quote and coverage details.
Address: Control Tower, 27th Floor, Motor City, Dubai.
Contact No: +971 800 253733
2. GIG Gulf
GIG Gulf, previously AXA Insurance, is a famous name among home insurance companies in Dubai. Not only are they licensed by the UAE insurance agency, but they have been working in the region for more than 70 years.
Address: Churchill Executive Tower, Business Bay, Floor 39, Dubai.
Contact No: +971 800 292
3. InsureAtOasis
InsureAtOasis is another trusted home insurance provider in Dubai and UAE. They focus on innovation with a digital platform that lets you inquire about different home insurance policies from the comfort of your home.
Address: 2402, Aspect Tower, Business Bay, Dubai.
Contact No: +971 50 559 5945
4. Gargash Insurance Services LLC
Founded in 1994, Gargash is one of the top home insurance companies in Dubai. They offer multiple policies at competitive rates for homeowners with varying needs.
You don’t have to visit them, as you can easily get a quote online. You can visit their website or contact them directly if you have any questions.
Address: Office no 305, 3rd Floor, Pyramid Centre, Umm Hurair Road, Dubai.
Contact No: +971 800 4274274
5. Covermatch
Lastly, the list of best home insurance companies in Dubai is incomplete without mentioning Covvermatch. A reputable name in the industry, you’ll find they have a variety of home insurance policies.
Address: Office 2019, Dtec, Building A5, Dubai Digital Park, Dubai Silicon Oasis, Dubai.
Contact No: +971 4 320 9810
Bonus Tips to Make the Most of Your Home Insurance Policy in Dubai
You can use the following tips to get the most out of your home insurance policy.
- Regularly review your policy to keep up with your changing needs and inform your policy provider.
- Regularly update your insurance company about any changes to the building or its contents to avoid future legal troubles.
- As soon as the damage happens, file a claim and provide all the essential details to your insurance provider.
FAQs
- Is home insurance mandatory in Dubai?
Even though home insurance is not mandatory in Dubai, we highly recommend it to homeowners. It is the only instrument providing legal and financial cover for an accident that can compromise your hefty real estate investment.
- What does home insurance not cover in Dubai?
Generally, a home insurance policy in Dubai does not cover damages due to war and terrorism. Intentional damages are also not covered in the policy.
- How much is property insurance in Dubai?
Typically, the cost of a home insurance policy ranges from 0.1%-0.5% of the property’s rebuild value.
Final Words
Due to the real estate sector’s lucrative nature, property prices are consistently rising. Therefore, any homeowner who wishes to protect their investment must have their property insured.
The key is to analyze multiple home insurance companies in Dubai and choose a reputable provider that can suggest a policy befitting your needs and expectations.
Lastly, investing in the right kind of property is also essential. The best way to do that is to consult experienced real estate professionals who can recommend properties with the most competitive prices.