Building Insurance in Dubai

What is Building Insurance?

Building insurance covers the physical structure of your property, including walls, roof, floors, windows, and built-in fittings like kitchens and bathrooms. In case of damages or losses in various scenarios, your policy can financially compensate you. This helps property owners avoid high repair costs and stay financially secure.

Insurance for buildings provides coverage against damage caused by fire, storms, water leaks, vandalism and other unexpected events. Some policies also offer added building protection insurance for things like falling trees or accidental damage.

Do You Need Building Insurance in the UAE?

Yes, you need building insurance if you own a property in the UAE. Here’s why it makes real-world sense —

1. Covers high repair costs: Structural damage from fire, burst pipes, storms, or even accidental incidents can cost thousands of dirhams. Insurance for building ensures you're not paying out of pocket.
2. Keeps your rental income secure: If you’re a landlord, building insurance for rental property helps you avoid loss of income if the property becomes uninhabitable and covers repairs quickly.
3. Useful during tenant disputes: Some plans help you cover damage caused by tenants. This can be helpful for furnished or semi-furnished rental properties.
4. Smooth claims and emergency assistance: The top insurers also offer fast claim processing and emergency support, like water leakage response or electrical issues. This saves you from stress and hassle.
5. Available across property sizes and budgets: Whether you own a studio or a luxury villa, you can find options from the cheapest building insurance to full-scale coverage (as per your needs).
6. Compliance with building management rules: Some freehold communities in Dubai or Abu Dhabi require proof of building insurance coverage as part of their owner association guidelines.

How Much Building Insurance Do You Need?

In the UAE, the amount of coverage you need depends on the rebuilding cost of the property — not just its market value. The sum insured should reflect how much it would cost to reconstruct the building from scratch, including materials, labour and any associated fees like debris removal and professional services.

Here’s what to consider —

1. Rebuilding cost, not resale value: You should insure the building for the full cost of reconstruction, which is usually lower than the market price. Building insurance cost is calculated based on this figure.
2. Built-up area matters: The total covered area in square feet or square metres plays a major role in determining the insurance amount.
3. Type of property: Villas, apartments and commercial units have different per-square-foot rebuilding estimates. Premium properties or custom-built villas may require higher cover.
4. Fittings and fixtures: Permanently installed items like flooring, built-in wardrobes, kitchen cabinets, and sanitary fittings must be included in your building insurance coverage.
5. Developer’s handover documents: These often include construction cost or estimated rebuilding value — useful when selecting your building cover amount.

Let’s understand with an example —

Suppose you own a villa in Dubai with a built-up area of 3,000 sq. ft.

The average rebuilding cost in the UAE might range between AED 300–500 per sq. ft., depending on materials and finishes.

So, if your villa costs AED 400 per sq. ft. to rebuild:

3,000 sq. ft. × AED 400/sq.ft.  = AED 1.2 million

That’s the amount you should insure your building for.

This figure covers just the structure like walls, roof, flooring, built-in items, plumbing, electrical systems, and permanent fixtures like kitchen cabinets and wardrobes.

Important: Most insurers in Dubai and across the UAE suggest reviewing your building policy every few years. This ensures that your plan’s coverage still reflects current construction prices. Underinsuring may reduce the claim payout, so it’s always better to be accurate.

Best Building Insurance Plans in the UAE

Find below some of the top building insurance plans in the UAE along with their key features —

Plan & Insurer	Top Features of Building Insurance Plan	Apply
Home Comfort (GIG Gulf Previously AXA)	Loss of Rent, Alternative Accommodation, Owner’s Liability (AED 5M), Emergency Home Assistance, Fire Cover	Get Quotes
Home Protection (Tokio Marine)	Fire & Lightning, Explosion, Earthquake, Water Damage, Owner's Liability (Optional), Loss of Rent	Get Quotes
Home Umbrella (Sukoon Insurance)	Loss of Rent (up to AED 500,000), Owner’s Liability (AED 3M), Fire, Explosion, Lightning, Water Damage	Get Quotes
Manzil Home (Fidelity United)	Owner’s Liability, Fire & Flood, Accidental Damage (Optional), Bursting of Pipes, Rent Loss (As Scheduled)	Get Quotes

What is Included in Building Insurance?

Building insurance in the UAE generally covers the permanent structure of your property — from the walls to the roof and everything fixed in between. Some of the key inclusions of a standard building policy are as follows —

Coverage	What is Included?
Structural Coverage	Walls, roof, floors, ceilings Doors and windows Built-in wardrobes and kitchen cabinets Fixed sanitary ware and plumbing Electrical installations and wiring Internal staircases and fixed glass
Fire & Explosion	Fire and smoke Gas explosions (domestic) Lightning and thunderbolt Electrical short circuit causing fire
Water-Related Damage	Burst water pipes and tanks Overflowing water tanks or apparatus Storm, flood, and rainwater damage (when sudden and unforeseen)
Natural Disasters & Impact	Earthquake and subterranean fire Falling trees, poles, or aerials Vehicle impact Aircraft or satellite debris
Loss of Rent / Alternative Accommodation	If your property becomes uninhabitable due to an insured event — You get reimbursed for loss of rent or Paid for temporary accommodation costs for up to 12 months (limits vary by insurer)
Owner’s Liability	All plans include third-party legal liability cover in case someone is injured or property is damaged due to something related to your building
Debris Removal & Repair Services	Debris removal costs post-damage Emergency repair services (plumbing, electrical) Architect or engineer fees for rebuilding

Optional Cover Under Building Insurance in Dubai, UAE

While standard building insurance policies cover structural damage, fire, and water-related incidents, many insurers in the UAE also offer optional add-ons that can enhance your protection.

Here’s a list of optional covers available from top UAE insurers —

1. Accidental Damage Cover: Protection against unintentional damage like broken glass, smashed tiles, or damage from moving furniture
2. Tenant Malicious Damage (for landlords): Covers intentional damage caused by tenants — especially useful for building insurance for rental property
3. Personal Possessions Cover (Extended Contents): Add cover for items like electronics, watches, jewellery, or art kept inside the building, available in plans that bundle building + contents insurance
4. Home Assistance Services: Emergency repair coverage for plumbing, electrical, locksmith, and AC issues
5. Increased Loss of Rent / Alternative Accommodation Limits: You can increase the limit of rent coverage in case your property becomes uninhabitable
6. Owner’s Legal Liability Extension: Higher third-party liability limits if you want more than the default AED 3M–5M
7. Valet / Security Services:  Available for high-net-worth properties with additional service requests

💡 Tip: Optional covers usually come with additional premium. Make sure you add only what’s relevant to your needs — like tenant damage if you’re renting out or accidental damage if your home has fragile interiors.

What is Not Included in Building Insurance?

Although building insurance offers comprehensive protection for your property, there are certain exclusions you should be aware of. These exclusions are consistent across most UAE insurers.

1. Loss or damage due to wear and tear: Gradual damage caused by ageing, corrosion, rust, or poor maintenance is not covered
2. Pre-existing defects or faults: Damage due to poor design, construction faults or defective workmanship is excluded
3. Malicious damage by tenants or occupants: Deliberate damage caused by tenants, guests, or domestic helpers is not covered unless specifically included
4. Unoccupied property: If the home is left unoccupied for more than 60 consecutive days, many policies reduce or void coverage during this period
5. War, terrorism, and nuclear risks: Damage from acts of war, terrorism or nuclear incidents is usually excluded unless stated otherwise
6. Illegal activities: Any damage resulting from criminal or illegal use of the property is not covered
7. Consequential or indirect loss: Loss of future earnings, reduced property value, or delays in reconstruction are not compensated

Disclaimer

The information above highlights some of the commonly available plans and features in the UAE. These are not limited plans and actual coverage, premiums, and terms may vary depending on the insurer and your specific property details. For the latest options, customised quotes and accurate information, please visit Policybazaar.ae and explore more plans to choose the right building insurance UAE policy for your needs.

Reasons to Insure Your Building with Policybazaar.ae

If you're looking to buy building insurance in the UAE, Policybazaar.ae offers a trusted and convenient platform. With this platform, you can compare plans and get covered in just a few clicks. Here’s why many homeowners and landlords across Dubai, Abu Dhabi, and the wider UAE choose it —

1. Compare Multiple Plans in One Place: You can instantly compare the best building insurance policies in UAE from top insurers like GIG Gulf, Sukoon, Tokio Marine and Fidelity United — all on one simple dashboard.
2. Get the Cheapest Building Insurance Deal: Whether you're covering a villa, apartment, or rental property, Policybazaar UAE helps you find the most cost-effective plans without compromising on coverage.
3. Transparent Coverage Details: Each plan lists clear details — what's covered, what's not and how much you pay. This way, you’ll never be confused about what your building policy includes.
4. Free Quotes with No Hidden Fees: You can get instant quotes for building coverage insurance with zero obligation to buy. No middlemen. No surprises.
5. Quick Claims Assistance: If you ever need to make a claim, the support team helps coordinate with the insurer for a fast and smooth process.

Factors Impacting Building Insurance Premiums

When it comes to calculating your building insurance cost in the UAE, insurers look at a combination of property-specific details and risk factors. Understanding these can help you manage premiums while still getting the right protection.

• Size and Type of Property: Larger properties or villas with more built-up area generally cost more to insure than smaller apartments.
• Rebuilding Value: Your premium is based on the estimated cost to rebuild the structure and not the market price of your home. A higher rebuilding cost means a higher premium.
• Location: Properties in areas prone to flooding or water damage (like ground-floor units or villas near water bodies) may attract higher premiums.
• Usage Type: Owner-Occupied vs. Rental: If you’re buying insurance for rental property, some insurers may add a small risk load. This is especially the case if tenants change frequently.
• Construction Quality and Age: Older buildings or those with outdated wiring and plumbing may be costlier to insure due to increased risk.
• Claims History: If you've made frequent building insurance claims in the past, you might be quoted a higher premium by some insurers.
• Security Features: Security cameras, fire alarms, smoke detectors, and strong locks can reduce the risk of theft and damages. This can reduce your premium, especially for villas.

Building Insurance Claim Process in the UAE

If your building suffers damage due to fire, flood, or any other covered event, you can file a building insurance claim and get compensated. The process is simple when you’re insured with top providers. Simply follow the given steps — 

1.) Inform the Insurer Immediately

Report the incident to your insurance provider as soon as possible, ideally within 24 to 48 hours. Most insurers offer toll-free numbers or online claim portals.

2.) Document the Damage

Take clear photos or videos of the damage. If there was a fire, flood, or third-party impact (like a car hitting the wall), keep proof.

3.) Fill Out the Claim Form

Complete the official building insurance claim form. This document is usually available on the insurer’s website. Alternatively, you can do the process through their claims helpline.

4.) Submit Required Documents

You'll need —

• A completed claim form
• Photos/videos of the damage
• Police/fire report (if applicable)
• Estimate or invoices for repairs
• Proof of ownership or building details

5.) Surveyor Visit (if required)

For major claims, the insurer may assign a surveyor or adjuster to inspect the property and assess the loss.

6.) Claim Review and Approval

After reviewing documents and surveyor input, the insurer will process the claim. This is usually done within 5 to 15 business days.

7.) Payout or Repair Work

Depending on the policy, the insurer will either —

• Pay the approved amount to you
• Settle directly with the contractor or repair company

Frequently Asked Questions on Building Insurance