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Dubai's real estate market continues to grow impressively, attracting investors worldwide - including more and more from the Netherlands. In 2024 alone, the Dubai Land Department (DLD) recorded more than AED 761 billion worth of real estate transactions, up 20% from the previous year.
With this rapid growth and rising property values, it is more important than ever to properly protect your investment. One aspect that is often overlooked in this regard is home insurance.
Although it is not a legal requirement in the UAE to purchase home insurance, it is highly recommended. Moreover, mortgage lenders often make it mandatory for financed purchases. Understanding exactly what home insurance in Dubai entails is essential for a worry-free investment.
What does home insurance in Dubai cover?
Most home insurance policies in Dubai provide financial protection against unexpected damage or loss. Broadly speaking, coverage consists of:
Property insurance (for owners):
Protects the physical structure of your home - such as walls, roof, floors and fixed installations - from damage caused by fire, storm, flood and accidents, among other things.
Contents insurance (for owners and tenants):
Covers damage or theft of personal property such as furniture, electronics and jewelry.
Liability Insurance:
Reimburses damages or injuries to third parties for which you are held liable, including legal fees.
Reimbursement for alternative housing:
If your home becomes uninhabitable due to fire or flooding, for example, the insurance pays for temporary lodging elsewhere.
Tenant liability coverage:
Protects tenants from charges for damage to the leased premises, which may otherwise result in loss of the security deposit.
The April 2024 heavy rains and floods have caused many insurers to revise their coverages. So it is important to check carefully to see if water and storm damage is explicitly included in your policy.
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What is usually excluded from coverage?
Although home insurance policies offer broad protection, there are also distinct exclusions. Common ones are:
- Damage caused by war, riots or terrorism (unless included as additional coverage)
- Wear and tear or poor maintenance
- Errors in construction or use of defective materials
- Environmental pollution or damage caused by negligence
- Intentional damage by the insured
- Damage to homes that are vacant for more than 60 days unless separate coverage is purchased
Always read the policy terms carefully to avoid misunderstandings and unexpected costs.
What determines the amount of your premium?
The cost of home insurance depends on several factors:
FactorInfluence on premiumType and value of homeLarger homes and villas are more expensive to insureLocationAreas with higher property values or more risk may have higher premiumsCoverage and sum insuredMore comprehensive coverages cost moreSecurity measuresHomes with alarm systems or camera surveillance may get a discountHistory of claimsPrevious claims may increase your premiumOwner riskA higher deductible lowers monthly costs
According to recent reports, premiums in Dubai rose by an average of 15 to 17% between the end of 2024 and the beginning of 2025. This is mainly due to increased risk awareness following extreme weather events and rising construction costs.
Well-known insurers in Dubai
There are several reliable insurers operating in the Dubai market. Some reputable names are:
- GIG Gulf (formerly AXA)
- Sukoon Insurance (formerly Oman Insurance)
- ADNIC
- Liva Insurance (formerly RSA)
- Tokyo Marine & Nichido
- Dubai National Insurance (DNI)
Comparing quotes and carefully reading policy terms remains essential. Also pay attention to customer service and claims handling when making your choice.
Why home insurance is a wise choice
Whether you are a Dutch investor purchasing real estate or an expat renting in Dubai, a good home insurance policy is a smart move. You not only protect your home and possessions, but also provide peace of mind in case of unforeseen situations.
With a rapidly growing real estate market, and increasingly extreme climate events, it is increasingly important to cover risks with appropriate insurance.
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In conclusion
At Dubai-Property.com we assist our clients not only in purchasing property, but also in all subsequent steps - including choosing the right home insurance. By properly protecting your property, you continue to build a worry-free future in Dubai.
Questions about insurance in Dubai or starting a purchase process? Feel free to contact us - we will be happy to help you.
Disclaimer: This article is for informational purposes only. For personal advice, always contact a licensed financial or legal advisor.
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