The world was unprepared for a pandemic like COVID-19, but it happened and jolted the entire population. If there’s one thing that this outbreak has taught us, is that we always need to be prepared for the uncertain. It signifies the importance of home insurance.

A lot of people believe that nothing will happen to their homes in Dubai that they had purchased after a lot of struggle and effort. However, there is a possibility that property may get wrecked by water damage or fire. It can be a daunting situation that can lead to a lot of mental stress and financial trouble. Although properties in Dubai, particularly the latest apartment buildings, are built to resist calamities, you still cannot be sure about anything. That’s why it is important to explore home insurance options if you are planning to buy property in Dubai.


Home Insurance in Dubai consists of three main components. These include:

Building Insurance

This component of home insurance covers the structure of the homemade using concrete or brick. Generally, it is a prerequisite for a mortgage.

In some cases, this component can also extend to a swimming pool and/or garage. A particular type of building insurance, called the owner’s liability, also offers coverage for building owners. For example, if the owner causes an accidental injury to another person or damage to another property. They can claim expenses incurred.

In building insurance, the building owner is covered against “sum insured”. Some people confuse “sum insured” with the current market value or original cost of the building. However, it is the amount the owner receives in the case of an unfortunate event such as fire, water damage or any other calamity that has resulted in the total loss and the property has to be rebuilt. Generally, building insurance premiums are inexpensive as compared to the original cost of the property. They range from 0.02% to 0.07% of the sum insured value.

In the case the property owner has rented the building, building insurance won’t cover damages for which the tenant is responsible. To avoid this situation, the landlord may require the tenant to get home insurance that covers the tenant’s liability. For commercial properties, owners need to get “Property All Risks Insurance for Commercial Properties”.

Contents Insurance

As per a survey conducted in 2019 by Yallacompare, almost 70% of residents in the UAE aren’t covered with “Home Contents Insurance”.

Although not mandatory, contents insurance holds crucial importance if you want to save yourself from huge losses. This is due to the fact that building insurance only covers the structure of the property, not what’s inside it. A contents insurance, on the other hand, covers household items such as furniture, electronics, interior decorations, kitchen appliances etc. So, in the event of a house catching fire or getting damaged from any other calamity. The grieving party will be able to cover losses for the “contents” of their home if they have this type of home insurance.

In contents insurance, the sum insured is the current market value of the contents inside the home. In simple words, it is the amount the homeowner will get to replace the damaged content.

Personal Belongings

This one is an optional insurance, which covers personal items the property owner carries with them when they leave the premises of their home. The items that can be covered include, but are not limited to, laptops, tablets, mobile phones, watches, jewellery etc.

This type of insurance is suitable for frequent travellers or those who carry expensive items. Usually, this coverage extends up to 90 days. However, this time limit may vary from insurer to insurer.

In personal belongings insurance, the sum insured, similar to contents insurance, is based on the market value of the insured products. Having said that, it is important to revalue the products every year since the value of certain items, jewellery, in particular, increases over time.

Final Thoughts

To sum it up, it won’t be wrong to state that home insurance is as important as life insurance. After all, it is a matter of your life savings. So, if you are looking for a house for sale in Dubai, also contact insurance companies and get home insurance plans from them.

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