I am considering buying my first property in UAE and have researched home insurance. I’m having trouble understanding the difference between property insurance and home contents insurance – is it the same?

I would also be interested to hear your take on the benefits of purchasing home insurance.

Is it compulsory to have home insurance in the United Arab Emirates? And if I buy an apartment, will the building’s insurance cover the property in the event of an incident such as a fire? JA, Dubai

The first thing to clarify is the difference between property insurance and home contents insurance. The main difference is whether or not the structures and elements are attached to the physical building you are insuring.

Property insurance covers your home, garage, carport, outbuildings, gates and fences, as well as all fixed items such as solar panels, walls, ceilings and flooring for homes. loss or damage caused by a range of insured events.

Contents insurance only covers loss or damage to items inside your home as a result of insured events. These goods include household items that you own or are responsible for and use primarily for household purposes, such as furniture, furnishings, clothing, electrical appliances, and loose appliances.

When purchasing a property through bank financing, the lender will insist that the loan be protected by home insurance to cover losses related to construction costs and / or major maintenance. This is mandatory with mortgage financing, but only advised when purchasing the property in cash.

Insurance of contents is at the sole discretion of the occupant. If the occupant decides not to take out any insurance and the worst case scenario occurs, repair or maintenance of the affected property will be his responsibility.

Contents insurance only covers loss or damage to the contents of your home caused by insured events

Mario volpi

Often times we hear stories of homeowners or tenants losing their belongings to fires or flooding caused by household appliances, especially washing machines and boilers or water heaters, which can leak or explode. in extreme cases and damage other items.

This damage can also affect neighboring properties, especially when it comes to leaks or flooding in apartments. Liability for damage to furniture or third-party property is always a contentious issue, but if insurance is taken out, headaches and costly repairs can be alleviated.

I am planning to list my property for sale with a real estate broker in Dubai. What documents can I request to assess whether he is competent enough to negotiate on my behalf and represents my best interests?

I would also like to know if I am dealing with a genuine and licensed broker. What questions can I ask him to establish his credentials? HP, Dubai

When looking to hire a broker to sell your property, the first thing to ask is the Real Estate Regulatory Authority registration number, for both the agency and the individual broker. You will be able to verify these credentials online through the Dubai Rest app.

Within the app, you will be able to view office details, previous sales transactions, and download the broker’s card, in addition to being able to contact them directly.

In terms of knowledge and specialization in the field, I suggest you hire a broker who is very familiar with the community where your property is located. Ask for details of similar properties they have sold locally to make sure you understand their experience.

Access to industry data is very important, so ask for evidence of past sales from the broker, not only from the agency but also from the entire market.

Finally, the sales experience in the Dubai market is crucial. Ask the broker how long he has been in Dubai and also establish his experience as an agent in general and in the emirate property market in particular.

Knowing this is imperative as it will help you understand the breadth of the agent’s experience and, therefore, their ability to leverage it to help you sell your property.

Mario Volpi is the Director of Sales and Leasing at Engel & Volkers. He has worked in the real estate industry for over 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for informational purposes. Please send your questions to [email protected]

Updated: July 29, 2021 4:00 a.m.

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