Property insurance in Dubai is an important element of asset protection. Below are the key points every owner should understand before choosing coverage.

Property insurance is not about compliance — it is about protecting capital from low-frequency but high-impact risks.

Is Property Insurance Mandatory in Dubai?

No, residential property insurance in Dubai is not mandatory for all owners.

However, if the property is purchased with a mortgage, insurance is a mandatory bank requirement.

Apartment buildings are typically insured by the developer at the structural level. For townhouses and villas, insurance remains the owner’s responsibility. While optional, it is strongly recommended.

Property Insurance Pricing

There are two main types of coverage: building (structure) and contents. Indicative annual rates are as follows:

  • Building insurance — approximately 0.1% of the insured value per year
  • Contents insurance — approximately 0.5% of the insured value per year

In higher-risk areas, such as coastal zones and artificial islands, premiums may be higher.

For example, insurance for a small studio in a lower-risk area typically costs AED 550–700 per year.

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Choosing an Insurance Provider

Dubai has around 50 licensed insurance companies, including:

Pro Tip

Insurance terms matter more than the brand — exclusions and coverage limits define real protection.

Scope of Coverage

Property insurance typically covers risks such as:

  • Fire
  • Natural disasters
  • Vandalism

Policies may also include repair and evacuation expenses.

It is essential to distinguish between:

  • Building insurance — structural elements
  • Contents insurance — furniture, appliances, and personal belongings

Example of Annual Insurance Cost

Example: studio apartment built in 2015 with a market value of AED 1,000,000 (USD 272,300).

  • Structural coverage
  • Personal property insurance: AED 50,000 (USD 13,600)
  • Interior fit-out insurance: AED 40,000 (USD 10,900)
  • Third-party liability: AED 5,000

Total annual premium: AED 1,055 (USD 287).