Property All Risk Insurance in Dubai, UAE

What is Property All Risk Insurance in Dubai, UAE?

The name says it all: Property All Risk insurance (PAR) is like pure coverage that protects your commercial property from various types of risks and uncertainties. It covers loss and damage from all causes unless specifically excluded in the policy wording.

Many insurers in the UAE offer this business coverage under 'Fire and Allied Perils Insurance.' However, this policy is designed to provide far more comprehensive protection than standard fire insurance. Unlike a basic fire policy, property all risk insurance in Dubai offers broader coverage against a wide range of risks, including:

• Buildings and structures
• Machinery and equipment
• Office contents and stock
• Furniture, fittings, and fixtures

💡 It’s important to understand that the term “all risk” does not mean everything is covered, but rather that any risk not expressly excluded is included. This makes property insurance a preferred choice for medium to large businesses, warehouses, factories, retailers, and corporate offices.

Why Do Businesses Need Property Insurance in the UAE? 

Property all risk insurance Dubai is important for all business sizes, whether an SME or a large one. Listed below are the essential reasons to invest in this insurance:

Key Reasons to Buy Property All Risk Insurance

• Comprehensive Protection- With this insurance, you can get coverage for man-made and natural disasters, including fire, theft, burglary, earthquakes, and more. This provides comprehensive protection to your property. 
• Financial Protection- Business owners in the UAE can rely on PAR insurance as a financial safety net. This coverage compensates for loss or damage, helping protect owners from unexpected expenses and preventing their savings from being depleted.
• Legal Compliance- This business insurance in Dubai helps owners meet legal and contractual requirements, as it is sometimes mandated by lenders, landlords, and regulatory authorities in the UAE.
• Business Continuity- In the event of a crisis, property all-risks insurance helps businesses remain resilient and continue operations by covering loss and damage expenses, while reducing the risk of business interruption.
• Peace of Mind- Commercial property owners face numerous challenges, and this insurance plan provides peace of mind by ensuring their business is protected against sudden and unforeseen uncertainties.

💡A well-structured corporate property insurance UAE also enhances business credibility when dealing with investors, landlords, and financial institutions.

What is Covered Under Property All Risk Insurance UAE?

Corporate property insurance in UAE provides comprehensive coverage for your physical assets. Here are the key coverages you can get in the policy-

✅ Building damage

✅ Contents, furniture, and fixtures

✅ Electronic items

✅ Machinery and equipment breakdown

✅ Loss of rent

✅ Stock

✅ Natural disasters

In many plans, you can get the extensions option to enhance the policy’s coverage upon paying a nominal additional premium. Some of the key extensions or add-ons are:

🔶 Debris removal

🔶 Architects or professional fees

🔶 Third-party liabilities

🔶 Malicious damage

🔶 Accidental damage of plate glass and open area content

🔶 Fire brigade charges

What is Not Covered Under Property All Risk Insurance UAE?

While property all-risk insurance covers a wide range of incidents, certain situations are excluded in most policies. It’s important to understand the following key exclusions in your policy:

❌ Nuclear loss and damage

❌ Wear and tear

❌ War and terrorism

❌ Consequential loss, and more

How to Choose the Best Property All Risk Insurance Policy in the UAE? 

Choosing the best property all risk insurance in the UAE is a significant decision that you should make wisely. So, factor in the following considerations:

Risk Assessment

Begin by assessing your property’s risks to determine the right insurance coverage. Warehouses may face fire or machinery risks, while retail outlets are more prone to theft. So, analysing the risk helps you select suitable coverage and add relevant riders.

Property Type

The nature of your property directly impacts coverage needs. A commercial villa, high-rise office, or industrial facility each carries distinct risks, requiring tailored protection rather than a one-size-fits-all insurance solution.

Property Location

It’s another factor that plays a vital role in determining risk exposure. Properties in coastal areas like Dubai Marina may face humidity or flooding risks, while those in industrial zones could be more vulnerable to fire, equipment failure, or hazardous activities.

Scope of Coverage

Review the policy’s coverage scope carefully to get the best property all risk insurance. Ensure it includes protection against fire, theft, natural calamities, and accidental damage, along with optional add-ons such as business interruption coverage to safeguard income during unexpected shutdowns.

Find the Right Insurer

It’s important to be selective at this stage. With innumerable insurers in the UAE, choose one known for its strong presence, robust support, and easy claims settlement process. At Policybazaar.ae, you can find multiple insurers with the best coverage for your commercial property.

Property All Risk Insurance Cost in the UAE

The cost of property all risk insurance in Dubai widely depends on multiple factors, including:

*️⃣ Type and value of the property insured

*️⃣ Nature of business operations

*️⃣ Location (industrial zones, high-risk areas, free zones)

*️⃣ Age and structure of the building  

*️⃣ Extension added in the basic plan 

*️⃣ Claims history

*️⃣ Installation of advanced security systems 

On average, premiums are calculated as a percentage of the total insured value. Businesses looking for commercial property owners insurance should prioritise coverage quality over price alone in the UAE.

Key Takeaways

Property All Risk insurance is an essential coverage for business owners in the UAE. This comprehensive plan protects against a wide range of unforeseen events, offering a strong financial safeguard.

While selecting the right coverage can be challenging, Policybazaar.ae makes the process simple. You can obtain affordable, flexible plans that provide robust risk protection, making it one of the most effective property insurance options for businesses of all sizes in the UAE.

Frequently Asked Questions