A monitoring prepared by the real estate brokerage company W Capital showed 10 benefits of real estate insurance in the UAE against the risks of fire, water, or natural disasters, such as the unprecedented heavy rains that the country witnessed recently.
The company said in its report that property insurance, whether real estate or car, has become important after the recent severe weather conditions that caused damage to some homes and properties, indicating that real estate insurance represents the “guardian” for protecting real estate investments, as it provides a necessary layer of protection against a wide range of risks, from natural damages to legal challenges, ensures the security of real estate assets.
The report added that there is a common belief that property insurance is the responsibility of the owner, but this is not true. From a legal standpoint, the owner is only obligated to provide home insurance if it is mortgaged, as this will only cover the physical structure of the house and not its contents.
Real estate expert Walid Al-Zarouni, head of W Capital Real Estate Brokerage, explained that you can insure the property, villa furniture, and property inside the property if you are the owner, and if you are a renter, you can also insure the property and furniture, in addition to insuring the rental allowance to mitigate damages to the owner. The tenant in the event of force majeure circumstances such as floods, heavy rains, and natural disasters.
He stated that rent insurance ensures that owners achieve income from rent even if rent cannot be paid by tenants for various reasons such as job loss or serious damage to property.
The company stressed the need for insurance to be the next step immediately after purchasing or renting real estate, because it can protect against potential future losses, so insurance carries many benefits:
The First Benefit: Repairing Any Damages
W Capital stated that the issue of home insurance when buying or renting real estate in Dubai or in any other emirate has become inevitable, as the home is exposed to many damages and problems resulting from internal or external factors, in addition to the time factor and the long use of its facilities and parts. This necessitates the necessity of home insurance, with the aim of repairing these damages instead of incurring huge expenses, which increases the lifespan of the property and makes living easier for its residents.
Second Benefit: Coverage that Includes Personal Property
Home insurance coverage can extend to include buildings, homes, and personal property inside it. Home insurance coverage in the UAE also includes internal and external damage to the building as well, in addition to loss or damage to personal and other property due to fire, water, natural disasters, etc. As for how to insure a home in the Emirates, it is by communicating with one of the relevant companies.
Third Benefit: Investment Protection
W Capital believes that insurance provides financial protection against potential losses, ensuring the safety of real estate investments, and encouraging the pumping of more money into this sector without any fears.
Fourth Benefit: Coverage of Natural Damages
The insurance covers damage resulting from natural disasters such as storms, floods, and heavy rains that the country has witnessed recently. Therefore, everyone who insured their property or car previously will benefit, and will not bear any cost.
Fifth Benefit: Protection from Vandalism
W Capital added that the insurance benefits are numerous and also include real estate insurance, coverage against theft, break-ins, and acts of vandalism, which provides the necessary funds to compensate those affected by these potential actions.
Sixth Benefit: Legal Liability Coverage
Insurance provides protection for real estate owners from legal claims resulting from injuries or damage that may occur to others within the property.
Seventh Benefit: Enhancing the Value of the Property
Insurance contributes to maintaining its market value, by preserving the property’s safety and readiness, which increases the chances of reselling it at a good price.
Eighth Benefit: Supporting Reform Processes
Insurance helps cover the costs of repair or rebuilding after the damage occurs, and this is done quickly without the need to wait until the owner has the necessary funds available, as insurance companies finance these damages.
Ninth Benefit: A Condition for Real Estate Financing
Banks and financing institutions require real estate insurance as a condition for providing real estate loans, as a protection against any potential damages that may befall the property.
Tenth Benefit: Financial Stability of the Property Owner
Insurance ensures the stability of the property owner’s financial situation in the event of any damage or loss, and helps achieve long-term financial sustainability for real estate projects by reducing the financial risks associated with real estate ownership.