Property Insurance in Dubai: Renewal Checklist for Landlords and Facility Managers

In Dubai, the annual renewal of property insurance is not a formality, but a management process that affects the financial stability of the landlord and facility manager. The policy is usually valid for 1 year, so before renewal, it is important to review coverage, insurance amount, deductible, exclusions, claims history, and changes to the facility. Supervision of the insurance sector is carried out by the UAE Central Bank (CBUAE), and for mortgage facilities, building insurance is often a mandatory requirement of the lender. The management of jointly owned property is regulated by Law No. 6 of 2019 and Law No. 27 of 2007, and rental practices are based on article 16 of Law 26 (2007).

Verification of Coverage and Insurance Amount 

Start by verifying the sum insured. For a building, focus on the rebuild value, and for the contents, focus on the replacement value. An error in assessment leads to underinsurance and problems in settling claims. The standard guideline for the cost of a policy for a building in Dubai is about 0.1%-0.5% of the replacement cost per year.

Check the coverage, including building and apartment insurance, strata insurance for common parts, third-party liability, D&O for directors and officials in the Owners Association, workers’ liability and compensation, and equipment breakdown insurance. Income protection, loss of rent, and alternative accommodation costs for tenants in case of major damage are critical for rental properties. Compare the limits with the actual cost of repairs and rental downtime.

Risks, Location, and Loss Prevention 

Risk assessment should take into account the location. For example, coastal and alluvial areas are susceptible to high risk of corrosion, wind impacts, and moisture penetration. Basic perils include fire, flood, burst pipes, earthquake, explosion, burglary, and vehicle or airplane impact. Upgrade your security systems and alarms, install smoke detectors and leak detectors, plan for emergency maintenance, and turn on pest control. The recommended frequency of inspections is every 6 months; tenants are notified 24-48 hours in advance. Such inspections reduce the frequency of claims and help negotiate premium terms based on actual risk management.

Tenant Management and Documentation

Review the tenancy agreement, which means one should clearly separate minor and major maintenance. The practical guideline is that up to AED 1000 refers to minor repairs, which are more often covered by tenant, over AED 1000 is the responsibility of the landlord. Record the schedule of scheduled inspections, the order of access, the SLA for the elimination of defects and the rules of incident reporting.

If the object is part of a Jointly Owned Property, coordinate the policy with the OA: at the level of common parts, building/common parts, third-party liability, D&O, workers’ compensation are mandatory; following the AGM, check that the boundaries of responsibility of the OA and individual owners do not overlap. Keep protocols, inspection reports, photographs, and receipts as these proofs speed up settlement and reduce disputes with claims.

Budget, Franchise, and Settlement 

Recalculate the premium and analyze deductible. An increased deductible often reduces the cost of the policy, but check whether the budget can withstand the costs of minor incidents. Compare several policies, inclusive of limits, exclusions, conditions for loss of rent and alternative accommodation, and availability of equipment breakdown. Check the lender’s mortgage requirement so that you do not encounter a refusal when issuing certificates.

An expert insurance broker can help prepare the renewal package that entails an up-to-date estimate for rebuild value, inventory of contents, confirmation of completed maintenance, inspection reports, and claims history for the period. Correct disclosure is critical. Incorrect or incomplete information often leads to a refusal of payment.

To manage cash flow, you can consider an annual payment if the insurer offers a discount, or a monthly schedule, but keep an eye on the final overpayment. Online purchase policy is convenient, but do not skip the technical details. For each risk, there should be a clear limit, a clear area of responsibility and confirmation of how exactly the loss of rent is considered in case of partial downtime.

As a result, the checklist for renewal in Dubai looks like this: update the rebuild value and replacement value assessment, confirm coverage for key risks and liability, compare deductible and premium, take into account the Law requirements and OA rules, fix the responsibilities of landlord and tenant in the tenancy agreement, conduct inspections with tenants’ notification in 24-48 hours, collect a complete set of documents and claims history. This approach reduces the likelihood of underinsurance, speeds up settlement, and protects owners, landlords, tenants, and the facility’s management team from real financial losses.