Get Building Insurance in UAE

What is Building Insurance?

Building insurance is a specific type of home insurance that provides coverage for the physical structure of a property, including walls, roof and foundation. It also includes protection for permanent fixtures such as kitchen fittings, bathrooms, and other built-in features.

Building insurance in Dubai is important for homeowners, landlords and property investors as it helps to protect the core structure of their property against various risks such as fire, flood, storms or other accidental damages.

Thus, if you own a villa or an apartment, having home building insurance confirms that your investment remains protected from unforeseen events that could potentially lead to significant financial loss.

Why is Building Insurance Important?

Building insurance is important for several key reasons -

1. Protection Against Natural and Accidental Damages: The UAE, while known for its modern infrastructure, is not immune to natural disasters such as floods or sandstorms, and accidental incidents like fires or structural damages. Building insurance mitigates the financial burden that could arise from these unforeseen events.
2. Legal Requirements for Mortgaged Properties: If your property is mortgaged, building insurance in Dubai is usually a mandatory requirement set by lenders. This ensures that the property, which is used as collateral, remains protected from significant damages.
3. Cost-Effective Risk Management: Repairing or rebuilding a damaged property can be extremely costly, especially in the UAE where property prices are high. Building insurance offers a cost-effective way to manage such risks, with the insurance company shouldering the financial responsibility with the property owner.
4. Financial Security: Owning a property is a significant financial investment. Building insurance ensures that any major structural damage does not result in overwhelming costs for the owner. This allows the homeowner to focus on other financial responsibilities without the fear of unexpected repair costs.

What is Included in Building Insurance?

Building insurance in Dubai usually covers a wide range of risks and potential damages to the structure of your property. Given below is a detailed breakdown of what is commonly included in house building insurance:

1- Structural Damage

The core of building insurance covers the physical structure of your property. This includes:

• Walls, Roof, and Foundation: Any damage to the basic framework of the building due to fire, storms, floods, or other insured events is covered.
• Permanent Fixtures: Built-in features like kitchens, bathrooms, fitted wardrobes and cabinets are also insured as part of the building structure.
• Windows and Doors: Coverage extends to windows, doors, and other integral fittings attached to the property.

2- Breakage of Fixed Glass and Sanitary Fixtures

• Glass and Windows: Accidental damage to fixed glass, including windows, doors, and any glass installed as part of the building, is covered.
• Sanitary Fixtures: This includes sinks, bathtubs, toilets and other permanent fixtures that might suffer accidental breakage.

3- Fire and Allied Perils

One of the most important coverages in home building insurance is protection against fire and related risks. This includes:

• Fire: Damage caused by accidental fires.
• Lightning and Explosions: Destruction caused by natural phenomena like lightning or accidental explosions.
• Earthquakes and Subterranean Fires: Although rare, the coverage extends to protect your property from seismic activity.

4- Water Damage

Water-related damage is a common concern and building insurance includes:

• Burst Pipes: Coverage for damage caused by burst pipes or other water-related issues inside the property.
• Escape of Water: Damage due to water escaping from tanks, pipes, domestic appliances or central heating systems.

5- Damage from Natural Disasters

• Floods and Storms: Properties in the UAE are susceptible to occasional heavy rains and flooding. Building insurance in Dubai covers damages caused by such natural calamities.
• Impact from Falling Trees: If a tree or large branch falls and damages the building, repairs are covered.

6- Accidental Damage to Cables and Underground Pipes

Many building insurance policies cover accidental damage to utility lines, such as:

• Electrical Cables: Damage to underground electricity cables running to or from the property.
• Water Supply Pipes: Coverage for underground pipes supplying water to the building.
• Gas Pipes: Damage to underground gas pipes servicing the property.

7- Debris Removal

In case of damage, there might be debris left behind. building insurance in Dubai often covers:

• Removal Costs: Up to a certain percentage of the building sum insured, the policy will cover the cost of removing debris from the site.

8- Architects’ and Surveyors’ Fees

If rebuilding or repair work requires the expertise of architects, engineers or surveyors, the cost for their services is usually included. Typically, policies offer coverage up to 10% of the building’s sum insured, with a maximum cap depending on the insurer.

9- Loss of Rent or Alternative Accommodation

If your property becomes uninhabitable due to insured damages, many building insurance policies cover:

• Loss of Rent: If you're renting out the property, the policy will compensate for the rental income lost during repairs. 
• Alternative Accommodation: For homeowners, building insurance often covers the cost of temporary accommodation while the property is being restored. This coverage is usually up to a fixed percentage of the building’s insured value.

10- Public Liability

• Liability Coverage: Most building insurance in Dubai policies include liability protection, which covers legal costs and compensation if someone is injured on your property or if your property causes damage to a third-party property.

11- Emergency Access

In cases where emergency services like the fire department need to access your property, insurers will cover the cost of any damage caused during their emergency response.

12- Underground Facilities

• Coverage for Underground Services: This includes sewage systems, water supply, and electrical conduits extending from the property. If these are damaged due to insured events, the cost of repair is covered.

13- Fire Extinguishment and Mitigation Costs

Many building insurance Dubai policies include the cost of fire brigade charges and other fire-fighting measures to prevent further damage. 

 14- Accidental Subsidence

• Subsidence and Heave: In certain policies, damage caused by the sinking or rising of land (subsidence or heave) under the property is covered, though this may depend on specific geographical factors in the UAE.

15- Legal Expenses

• Legal Fees: If a property owner needs to take legal action due to building damage or a related incident, certain policies provide coverage for legal costs.

What is Not Included in Building Insurance?

While building insurance offers extensive protection for your property, there are certain exclusions that are not covered under most policies. 

Wear and Tear

• Gradual Deterioration: Building insurance does not cover the natural wear and tear that occurs over time. This includes ageing of materials, cracks in walls due to settling or deterioration due to lack of maintenance.
• Maintenance Issues: Regular upkeep and maintenance of the property are the owner’s responsibility. Insurance will not cover damage caused by failure to maintain the building properly.

Damage Caused by Pests

• Termite Infestation: Damage caused by termites, rodents or other pests is not included in building insurance. Property owners need to manage pest control and prevention separately.
• Fungi and Mould: Any damage resulting from mould, fungus or dampness caused by poor ventilation or leakage that was not addressed is excluded.

Acts of War and Terrorism

• War-Related Damage: Any damage caused by war, invasion, military action or civil unrest is generally not covered by building insurance.
• Terrorism: Losses or damages resulting from terrorist attacks or related activities are excluded unless specified otherwise in the policy.

Natural Movements of the Earth

• Earthquakes (in some cases): While some policies may include earthquake coverage, others may not. This depends on the insurer and it’s important to confirm this when buying the policy.
• Landslides and Coastal Erosion: Damage caused by natural ground movements such as landslides, subsidence (sinking of land) or coastal erosion is often excluded unless explicitly stated in the policy.

Flooding in Certain Areas

• Flood Exclusions: While some policies cover flood damage, certain high-risk areas may be excluded from flood protection. Always check with the insurer if your property lies in a flood-prone area to understand what is covered.

Unoccupancy Exclusion

• Long Vacancies: If a property is left unoccupied for a certain period, generally more than 60 consecutive days, many insurers exclude coverage for any damage or theft occurring during this period. Owners must inform the insurer if the property will be vacant for extended periods to avoid this exclusion.

Deliberate or Negligent Acts

• Intentional Damage: Damage caused intentionally by the homeowner or occupants is not covered.
• Negligence: If damage results from gross negligence, such as leaving water running or failing to secure the property properly, the insurer may deny the claim.

Electronic Data and Cyber Incidents

• Loss of Digital Data: If a cyber attack or data breach affects the property’s control systems (such as security or smart home systems), building insurance in Dubai will not cover the associated damages. 

Damage to External Structures

• Gardens, Plants, and Trees: Building insurance does not cover any damage to gardens, landscaping, trees or plants surrounding the property.
• Outbuildings (unless specified): Detached garages, sheds or similar outbuildings may not be covered.

Uninsured Perils

• Wear from Weather Conditions: Damage caused gradually by natural elements such as wind, rain, or sunlight, resulting in fading, rusting or corrosion, is excluded. This is different from storm or flood damage, which is covered under specific circumstances.
• Temperature-Related Damages: Losses caused by changes in temperature (e.g., freezing of pipes) without any sudden and accidental cause are not covered.

Construction and Renovation Exclusion

• During Renovations or Repairs: If damage occurs while the property is undergoing construction, major renovations or structural repairs, it is excluded. Special coverage may be required during such periods to protect the property from damage caused during the works.

Note:  Each insurance provider may have variations in terms of the limits of coverage, exclusions and specific conditions. Therefore, it is important to carefully review the building insurance policy details before purchasing. 

Optional Covers in Building Insurance

Building insurance in the UAE offers several optional covers that can be added to enhance protection based on the specific needs of homeowners. These additional coverages provide comprehensive protection for areas that may not be included in the standard building insurance. Here are some common optional covers you can choose -

• Personal Belongings Cover: This cover extends to personal belongings, including valuables, portable electronics, and other personal items that may not be automatically covered in the building policy. It includes coverage for accidental damage or loss of items like jewellery, mobile phones, and laptops whether you are at home or away. Some policies also offer protection worldwide for up to 90 days.
• Domestic Helper Cover: This optional cover provides accidental injury, medical reimbursement and repatriation benefits for domestic helpers working in your household.

What is a Building Insurance Calculator?

A building insurance calculator is a tool used by homeowners in the UAE to estimate the cost of their building insurance premiums. It takes into account several factors like the property's value, location, age and condition, as well as the desired coverage required. The calculator determines how much it would cost to insure your building, so that you have an idea of the premiums you would need to pay.

Claim Process of Building Insurance in UAE

The claim process for building insurance in the UAE generally involves the given steps -

• As soon as an event that causes damage occurs (such as fire, storm, or any insured peril), it is essential to inform your insurer immediately. Most insurance providers require you to notify them within a specific period, typically 7 to 15 days​.
• The notification should include the details of the incident, such as the type of damage, when and where it occurred and any other relevant information.
• The policyholder is required to submit essential documents, including:
  • Claim form: Filled out with details of the incident.
  • Photos and Videos: Evidence of the damage helps the insurer assess the situation.
  • Invoices and Receipts: Proof of ownership for damaged items (if applicable), repair estimates and any other related documents.
  • Police or Fire Report: In cases of theft, vandalism or fire, you will likely need to provide an official police or fire brigade report.
• The insurer may appoint a loss adjuster to visit the property and assess the damage. The adjuster’s role is to determine the extent of the damage, the cause and the estimated cost of repairs or replacement​.
• The loss adjuster will visit the property to inspect the damage and provide a report to the insurer.
• Once the insurer reviews the adjuster's report and the documentation provided, they will approve or deny the claim. If approved, they will outline what will be covered under the policy.
• After the claim is approved, the policyholder can proceed with repairing the damage. Depending on the policy terms, the insurer may reimburse the policyholder or directly pay the contractors.

How to Get Building Insurance Quotes in UAE?

With these wide range of coverages and inclusions, it’s clear that building insurance, an important part of home insurance, provides comprehensive protection. It covers structural damage, fire risks, accidental damage, loss of rent and liabilities.

One of the best platforms to get a building insurance quote in the UAE is Policybazaar.ae. Policybazaar UAE is a trusted and leading online insurance comparison platform, which offers a simple and transparent way to compare insurance policies from top providers. What makes Policybazaar.ae different is its commitment to helping customers find the best policy tailored to their specific needs, backed by a user-friendly interface and excellent customer service. 

To get a building insurance quote, simply fill out the lead form on Policybazaar.ae, and a representative will contact you shortly to guide you through the process. It’s quick, easy, and a reliable way which guarantees you the best protection for your home.

Frequently Asked Questions