Why home insurance in Dubai is indispensable for Dutch investors

The recent fire at the Marina Pinnacle tower in Dubai, in which thousands of residents had to be safely evacuated, highlights the undeniable need for thorough home insurance. Although fortunately no injuries were sustained, personal belongings and in some cases the homes themselves were lost. Such unexpected events remind us how essential it is to adequately protect your property. Dutch investors are flocking to this modern metropolis in large numbers to realize their dream homes, and with such an important investment, it is crucial that your property is properly insured. This article provides an in-depth overview of home insurance in Dubai, from the types of cover and cost factors to the best providers and legal obligations.

What does home insurance cost in Dubai?

Whereas home insurance is taken for granted in the Netherlands, it was less common in Dubai for a long time. However, with the impact of extreme weather events and the growing number of real estate investors, home insurance is becoming increasingly important. Here are the main reasons why you should insure your home in Dubai:

• Climate and natural hazards: In April 2025, unprecedented floods caused billions of dollars in damage, leading to a 10-15% increase in insurance premiums (Marsh). This highlights the need for coverage against unexpected natural phenomena, which are becoming increasingly common in Dubai.
• Protection against theft and damage: Although theft and vandalism are less common than in Europe, luxury apartments and villas can be a target. Adequate insurance covers the cost of repair or replacement in such incidents, keeping your investment protected.
• Liability coverage: If someone is injured on your property, you may be held liable for medical expenses and damage claims. This coverage protects you from unexpected legal and financial consequences.
• Peace of mind and investment protection: Insurance prevents unexpected financial setbacks and protects your investment, whether you live in Dubai permanently or rent out your property. It provides peace of mind that your property holdings are covered, which is crucial for any well-considered real estate investment.

Types of home insurance in Dubai

Depending on your specific situation, there are different types of home insurance policies available in Dubai:

1. Buildings insurance (Buildings Insurance).

This insurance protects the physical structure of your home from damage caused by fire, natural disasters, flooding and construction defects (Dubai Land Department). This includes the walls, roof, floors and fixed installations.

Notice:

• Often required by mortgage lenders in Dubai.
• Coverage varies depending on the insurer, so compare well.
• Additional options such as glass insurance and pool coverage are often available to further expand your coverage.

2. Contents insurance (Contents Insurance).

Contents insurance covers damage or loss to your personal property within the home, such as furniture, electronics, clothing and jewelry(InsuranceMarket.ae).

Key points:

• Often no standard coverage for jewelry and artwork of high value.
• You may need additional insurance for valuables, often called "All-Risks" coverage, which provides broader protection.
• You can choose coverage at new-for-old value (what it would cost to buy a new comparable item) or daily value (the value of the item at the time of damage, taking depreciation into account).

3. Landlord's insurance (Landlord's Insurance).

This insurance is particularly useful for investors who rent out their property through platforms such as Airbnb or through long-term leases. It protects you as a landlord against risks specific to rental situations.

Coverage may include:

• Loss of rental income due to damage to the property making it uninhabitable, or in the case of a non-paying tenant (up to a certain period).
• Legal fees for disputes with tenants, such as evictions or contractual problems.
• Damage caused by tenants (CBUAE), such as through negligence or vandalism, which is not covered by standard buildings or contents insurance.

4. Public Liability Insurance.

This insurance protects you from claims if someone is injured on your property or if your property causes damage to another property (WAM).

Examples:

• If a visitor slips on a wet floor in your home and needs medical attention.
• If a pipe in your apartment bursts and causes water damage to your neighbor's underlying property. This covers the financial consequences of damage your property causes to third-party property.

What Does Home Insurance Cost in Dubai?

The cost of home insurance varies depending on factors such as the value of your home and contents, the coverage chosen, your location of residence and the insurer. Here is a summary of estimated annual premiums for 2025 (Knight Frank):

Best home insurance companies in Dubai (2025)

For Dutch investors and homeowners considering home insurance in Dubai, there are several reputable insurers with strong reputations. These companies offer excellent service and coverage and are also well equipped to serve international investors and expats as well, often with multilingual support and a clear understanding of foreign investment needs.

• AXA Gulf: Strong international network, which is convenient for expats and international investors. Offers comprehensive coverage, including natural disasters, and is known for fast and efficient claims handling.
• RSA Insurance: Popular among expats and real estate investors in Dubai. They offer customizable packages that are also suitable for luxury homes and extensive property portfolios. There is often an option to bundle with car insurance for additional discounts.
• Oman Insurance Company (OIC): Has in-depth local expertise and offers competitive pricing with a thorough understanding of the local market. Specialist in protection against construction defects and structural damage, and ideal for property investors due to their expertise in landlord insurance.
• Dubai National Insurance & Reinsurance (DNIR): Excellent customer service and a strong focus on customer satisfaction. They offer lower premiums for homes in secure communities and flexible monthly payment options.

Tip: Compare quotes through platforms such as InsuranceMarket.ae to find the best deal that fits your specific needs and budget. This platform helps you compare different providers and coverages, and often offers personalized quotes based on your entered information.

Legal obligations and regulations

The insurance sector in Dubai is strictly regulated by the Central Bank of the UAE (CBUAE). This ensures a stable and reliable market, providing additional security for investors.

• In 2024, the total profits of the insurance sector reached AED 2.5 billion, indicating a stable and growing market (WAM).
• Dubai had the largest share of the insurance market, accounting for 59.9% of total profits.
• The CBUAE has established guidelines to create an enabling environment for the development of the insurance sector in the UAE (CBUAE), helping to protect consumers and investors.

Conclusion

Whether you are a homeowner, investor or expat, home insurance in Dubai is essential to protect your property and finances from unexpected risks. Recent events show that although Dubai is a safe and modern city, unforeseen circumstances such as fires and extreme weather conditions are always a risk. By understanding the different insurance options, cost factors and the best providers, you can make an informed choice and enjoy your investment with peace of mind.

Would you like more information or an insurance policy that perfectly suits your needs as a Dutch investor? Contact Dubai-Property.nl for independent advice and the best offers.

Disclaimer: This article provides general information about home insurance in Dubai and is not financial advice. Always consult an insurance specialist for personalized advice tailored to your specific situation.