It’s been a full year since the record-breaking rains drenched Dubai, leaving behind flooded streets, damaged properties, and a new reality for homeowners. While the city has long since dried up, one thing hasn’t—home insurance premiums. Property owners are still seeing costs rise, and new buyers, especially those with mortgages, need to factor this into their budget.
The Price of Protection Keeps Climbing
According to Avinash Babur, CEO of InsuranceMarket.ae, home insurance premiums have surged by 17% from Q4 2024 to Q1 2025, reflecting ongoing market adjustments based on risk assessments. While sharp spikes may be easing, Babur warns that stability is still out of reach.
For those renewing policies, the impact is clear—premiums have jumped by an average of 15% since April 2024, depending on location, property type, and claims history. And if your home is in an area prone to waterlogging , expect extra charges for coverage.
What New Property Buyers Need to Know
While home insurance is a must-have for mortgage holders, last year’s flooding was a wake-up call for many homeowners. Even those who weren’t required to take insurance are now opting for more comprehensive protection—covering not just their homes but the valuables inside .
The devastating effects of April 2024’s rains made one thing clear—homeowners can no longer afford to take risks when it comes to insurance.
Smooth Sailing for Claims Processing
One silver lining? The claims process for residential properties was fairly seamless , with insurers approving claims quickly. Residential policies tend to be straightforward, involving fewer stakeholders, which helped homeowners get their claims settled without unnecessary delays—especially for damages below AED 10,000 that didn’t require formal surveys.
A Year of Lessons for Developers & Property Associations
Beyond individual property owners, developers, architects, and homeowner associations have had to rethink their approach to managing properties. Many building reserves were depleted to cover urgent repairs, prompting an increase in service charges across freehold communities.
Developers, meanwhile, are taking proactive steps to “rain-proof” new projects, ensuring future buildings can better withstand extreme weather events.
The flooding of 2024 may have been unprecedented, but the lessons it left behind will shape Dubai’s real estate and insurance markets for years to come.
