A Comprehensive Guide to Home Insurance in Dubai for Property Owners

Ever heard of the saying, “If you fail to plan, you plan to fail“? Well, we have our own saying at Homevy: “If you don’t insure, you risk for sure.”

Whether you’re buying a penthouse in Jumeirah Village Circle (JVC) or a family villa in Business Bay, not insuring your property is as good as kissing your investment goodbye. 

So without further adooo, let’s talk about home insurance in Dubai and how to go about it. 

What Exactly Is Home Insurance?

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Home insurance is a type of insurance policy that financially protects your property against threats like fire, natural disasters, and other unforeseen events. Home insurance protects more than just your building’s structure. It also covers your belongings, liability for injuries, and even living expenses if your home becomes uninhabitable.

Although Dubai is popular for its top-notch safety measures, unexpected things happen all the time, which is why it’s important to get an insurance coverage for your home. 

FYI, even mortgage lenders require homeowners to get home insurance. That’s how important it is. But if that doesn’t convince you, let’s look at 5 more reasons to insure your home. 

5 Reasons You Should Get Home Insurance in Dubai

1. Damage Protection

Imagine a pipe bursts in your home. Water leaks out, causing damage to the walls, the floor, and your furniture. That’s a huge and unexpected financial burden. Buttttt if you have home insurance, it would take care of that for you. It would cover the cost of fixing the burst pipe, the ruined furniture, and cleaning up the water.

PS: Homeowners, landlords, and even tenants can get home insurance. Tenants usually secure their personal belongings in the property like furniture, electrical appliances, etc. While homeowners and landlords secure the property itself. 

2. It Handles Liability

If someone has an injury on your property, home insurance handles the bills. It takes care of their medical expenses and legal fees too. Yup, that’s right. 

3. It Can Help you Secure a Mortgage

While home insurance isn’t legally required to buy a home in Dubai, mortgage lenders make it a mandatory step. Without it, you may not be able to secure a loan.

4. Protection In Case of Theft

Home insurance covers losses from certain types of theft or vandalism on your property. This includes burglary, stolen packages from your doorstep, break-ins that cause property damage, theft by a guest or worker, and even stolen belongings from a storage unit. Sweet, huh?

5. Coverage for Temporary Living Expenses

Coverage for temporary living expenses is a separate type of insurance but is often included in some home insurance packages. It covers your expenses like accommodation while your home is under repair. 

5 Things to Consider When Choosing Home Insurance in Dubai

When choosing home insurance in Dubai, you must carefully consider these factors because picking the wrong insurance company can WILL affect your property in the long run.

1. The Insurance Coverage

There are several options for insurance coverage, such as building insurance, contents insurance, personal liability insurance, and natural disaster coverage. Before signing the document, always check the fine print to ensure everything is covered.

2. Insurance Costs and Premiums

Insurance premium is exactly how much you’ll be paying for insurance. The fee can be affected by the location of your property, its value, and the coverage you’ve included in your plan. In Dubai, Home insurance premiums usually range from 0.1% to 0.5% of the annual value of the insured property.

3. Excluded Options

These are the exclusions in your insurance policy. That is, items and situations that your insurance will not cover. Be sure to review them carefully so they don’t affect your claims or insurance payout.

They include things like:

• Normal wear and tear of structures in your home
• Failure to perform timely repairs
• Extremely valuable or high-risk items like jewelry and designer clothing. 

4. The Claim Process

Another thing to look out for is their claim process. Some insurance policies make it truly hard to make a claim while others don’t. Choose insurance companies with an easy and efficient claims process. This way, you don’t have to stress when trying to get a payout.

5. Additional Coverage

If you’re interested, most insurance companies will offer some additional coverage to expand your insurance plan. They may include:

• Legal expense coverage to help with legal costs during legal disputes for your property.
• An additional living cost that covers your temporary accommodations if there are issues with your home.

What Do You Need to Get Home Insurance in Dubai?

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Every insurance company requires a series of documents to help them assess the risk of insuring your property. So let’s start by assembling the right documentation.

You’ll need:

• A valid Emirates ID or passport
• Proof of ownership like title deed/sales agreement
• Architectural plans or drawings of the property
• A valuation report that shows the value of the property.
• Recent photographs of the property that show its features and current state.
• A detailed list of your belongings within the property, along with their current value.
• Proof of security measures, such as security systems, fire safety equipment, and alarms.

Your insurance company may also ask for some additional documents to help them better assess the risk of your property. 

How Do You Apply for Home Insurance in Dubai?

Preparing your documents is just one part of the process. Once you have your documents  ready, it’s time to apply:

1. Research and Compare: Make a list of insurance companies you’re interested in and request quotes.
2. Property Assessment: The insurers will evaluate your property and its risks before presenting coverage options.
3. Review and Choose: Carefully go through the policy details and select the best option for your needs.
4. Apply: Complete the application form and submit the required documents.
5. Make Payment: By this stage, you should know the costs, premiums, and coverage details. Proceed with the first premium payment.
6. Approval & Policy Issuance: The insurer will process your application. Once approved, you’ll receive your official policy documents.

Top 5 Home Insurance Providers in Dubai

Here’s a roundup of some of the best home insurance companies in Dubai;

1. Tokio Marine Insurance Co. Ltd

This Japanese insurance company has been operating in the UAE since 1976. Sponsored by Al Futtaim Development Services Co., they offer property and content coverage, with premiums starting at 1 AED per day.

They are located on the third floor of the Single Business Tower, near Emirates Holidays, JW Marriot Marquis Hotel. They can also be found at the Business Bay Metro Station, Dubai, UAE. Their office number is 302-305 and can be reached by phone at +971 4 3502 777.

They are open from 8:00 AM to 5:00 PM (Monday through Friday).

2. Sukoon Insurance

When it comes to experience, Sukoon is lacking none, as they’ve got a 49-year head start on the competition. They are big on affordability, and their insurance policies cover your homes, belongings, and domestic help in Dubai. Their plans are also flexible and can be adjusted to fit your needs.

They are located in a building on Omar Bin Al Khattab Street, next to Al Ghurair Mall, Deira, Dubai, UAE. They are open from 8:00 AM to 5:00 PM (Monday through Friday) and can be reached by phone at +971 4 2337 777.

3. Dubai National Insurance

They provide a complete home insurance plan that secures your property against various risks, such as fire, earthquakes, floods, and even burst water pipes. They also cover third-party liability protection.

You can find them on the 3rd Floor of the Dubai National Insurance Building, Sheikh Zayed Road (next to Mazaya Centre), behind Coca-Cola Arena, Dubai, UAE. They are open from 08:00 AM to 05:00 PM (Monday through Friday) and can be reached by phone at +600 5 8000 or +971 4 5969 666.

4. GIG Gulf

GIG Gulf, like Tokio Marine and Nichido Fire Insurance, also has plans that start at AED 1 per day. If you’re looking for worldwide coverage, accidental damage coverage, and additional living costs, then GIG Gulf is the company for you. It doesn’t matter if you live on the property or not; they’ve got you covered.

They are located at Floor 39, Churchill Executive Tower, Business Bay, Dubai, UAE. They are open from 8:00 AM to 5:00 PM (Monday through Friday) and can be reached by phone at 800 292 or +971 4 5074 085.

5. Liva Home Insurance (Formerly RSA Insurance)

Liva is another popular home insurance company in Dubai with comprehensive coverage options for homes, vehicles, travel, and more.

Their home insurance policies are flexible and can be adjusted to meet your needs, which is why many homeowners in Dubai prefer to work with them.

They are located on the 38th floor of the Burj Al Salam, Number 2, Sheikh Zayed Road, Dubai, UAE. They are open from 8:00 AM to 5:00 PM (Monday through Friday) and can be reached by phone at 800 772.

Popular Misconceptions About Home Insurance in Dubai

If it’s your first time securing an insurance policy for your property, there are a few misconceptions you should not believe: 

• Misconception 1: Insurance policies cover all forms of natural disasters. This is simply not true. Each company has its own policy regarding natural disaster coverage, so it’s always best to inquire about this before proceeding.
• Misconception 2: The older the property, the lower the home insurance premium. While this does sound logical, it is false. On the contrary, the older the property, the higher the premium since older properties have less structural integrity and are prone to damage.
• Misconception 3: Home insurance covers every one of your belongings. This is also false. It only covers some of your most valuable possessions, such as jewelry, designer clothing, furniture, and some other electrical appliances. However, this HUGELY depends on the policy of your insurance provider.

FAQs About Home Insurance in Dubai

1. Do I Really Need Home Insurance in Dubai?

Yes, it’s always best to secure your investments in case of a natural disaster, theft, or fire. Not having home insurance can set you back financially should anything happen to your property. 

2. How Much Does Home Insurance in Dubai Cost?

Home insurance usually costs around 0.1% to 0.5% of your property’s annual value.

3. What Influences the Cost of Home Insurance in Dubai?

Factors like the location of your property, the materials used in building it, what the property is being used for, and the coverage option you choose can all influence the cost of home insurance in Dubai.

4. Can I Get a Custom Home Insurance Plan?

Yes, you can. Most insurance companies like Sukoon Insurance and Liva Home Insurance offer custom policies to their customers. It allows you to select the coverage you need and remove the ones you don’t want. 

Top Tips to Protect Your Property in Dubai

If you’re renting out your property as a short-term rental, you’ll want to make sure it’s protected. Here’s how:

1. Screen your guests/tenants before handing over the keys. A little vetting goes a long way.
2. Ask for a security deposit just in case any damage happens during their stay.
3. Do a post-stay inspection to catch any issues before your next guest arrives.

You can also hand over your property to a management company like us (Homevy). We go the extra mile to keep it safe from guest-related damage. That said, we still recommend getting home insurance from a trusted provider in Dubai for extra peace of mind.

Final Thoughts on Home Insurance in Dubai

The only way to secure your investment and reap its rewards is by getting a great insurance policy. Everything you’ve learned in this article, from the reasons why you should get home insurance to the top insurance companies in Dubai, is information carefully crafted to guide you in securing your home.

Insurance should not be an afterthought or an oversight. It is an essential part of your investment and it should not be ignored. Take the time to review the companies listed above and pick the best insurance plan to help secure your property.

However, if you need help managing your property, you know who to call. 

See you soon!