Renovation Insurance Guide UAE

Why Most Homeowners Forget This Step

A lot of homeowners in the UAE believe their regular home insurance will cover them during renovations; but that’s not how it works.

Your standard policy only protects your home in its existing condition, as long as you don’t make any structural changes.

The moment you begin renovation work, your old home insurance coverage effectively ends.

So if something goes wrong during the project, your regular insurer will simply reject the claim. That’s why you need a separate renovation insurance policy; one that’s specifically designed to cover renovation-related risks.

What Is Renovation Insurance?

Renovation insurance is a special policy that protects your home, your contractor, and your belongings during renovation.

In the UAE, especially in Dubai, it’s often required by landlords, developers, or community management.

In simple terms, it covers damage, theft, or accidents that occur as a result of renovation activities.

Typical Insurance Coverage Includes:

• Property Damage: Covers accidental fire, water leaks, electrical faults, or collapse during renovation.
• Theft or Vandalism: Protects materials and tools stored on-site.
• Third-Party Liability: If your renovation causes damage to neighboring units or injuries to workers or visitors.
• Contractor Negligence: Covers errors or mishaps caused by contractors.
• Temporary Accommodation: Pays for your stay elsewhere if the property becomes uninhabitable due to renovation damage.

Types of Renovation Insurance You Should Know

Types of renovation insurance available for homeowners.

• Short-Term Renovation Insurance: Covers small home improvement projects (1–6 months). Protects against accidental damage during painting, flooring, or kitchen/bath remodeling, including minor leaks, fire, or material damage.
• Contractors’ All Risks (CAR) Insurance: Ideal for large or structural renovations. Covers homeowner and contractor for site damage like fire, flood, theft, third-party property loss, and worker injuries. Mandatory for projects worth AED 50,000+.
• Public Liability Insurance: Protect others if your renovation damages a neighbor’s flat, shared areas, or injures someone. Most Dubai buildings require this before approving renovation permits.
• Employer’s Liability / Worker’s Compensation: Covers medical and legal costs if a worker gets injured during renovation e.g., falls, electric shocks.
• Professional Indemnity Insurance: Protects you and professionals like architects, designers, if design or planning errors cause damage, like a ceiling collapse due to miscalculation.
• Contents Cover During Renovation: Safeguards your furniture, electronics, and valuables from dust, theft, or accidental damage while work is ongoing.
• Alternative Accommodation / Loss of Use Cover: Pays for temporary housing if your home becomes unsafe to live in during renovation, e.g., flooding, power cuts, strong fumes.

What Renovation Insurance Doesn’t Cover

Even the best policies have limits. Knowing them upfront helps avoid shocks later.

• Pre-existing damage
• Design errors
• Poor-quality materials
• Normal wear and tear
• Unauthorized work

How to Get Renovation Insurance in the UAE

Here’s a practical roadmap for homeowners in Dubai or Abu Dhabi.

Step 1: Get a Renovation Permit

Before insurance, your contractor or designer must apply for NOC from your building management or developer.

They’ll ask for:

• Work scope & drawings
• Contractor license
• Insurance documents

Without this approval, your insurer may reject your claim.

Step 2: Compare Quotes

Contact a few UAE insurance providers like:

Ask specifically for home renovation or contract works policy.

Step 3: Check Coverage Details

Look for:

• Property & third-party coverage limit AED 500,000+ recommended.
• Duration usually matches your renovation timeline.
• Deductible, how much you pay before insurance kicks in.
• Worker liability inclusion.

Step 4: Review Contractor’s Policy

Don’t rely solely on your contractor’s words, check documents.

Ensure the policy:

• Covers the project address.
• Is valid for the full renovation period.
• Includes you as a co-insured if possible.

Step 5: Keep Records

Keep digital copies of:

• Permits
• Contractor agreements
• Insurance policy and receipts
• Photos before and after renovation

These documents make your claim smoother if something goes wrong.

Real-Life Renovation Disasters That Insurance Could’ve Saved

Let’s look at a few real cases that prove why renovation insurance isn’t just optional, it’s essential.

1. 1. The Eight-Metre Fall — AED 100,000 Payout
   Another Abu Dhabi worker fell from an 8-metre height while installing scaffolding during a renovation job.
   He suffered a permanent disability, and the court awarded AED 100,000 in damages.
   Solution: With proper Employer’s Liability coverage, the contractor and homeowner could’ve avoided this legal burden.
2. 2. The Flooded Villa — Green Community, Dubai
   In early 2025, Dubai’s Green Community faced severe flooding after record-breaking rains.
   Several homeowners saw water seep into their villas, damaging furniture, wiring, and home appliances worth thousands of dirhams.
   One villa owner was mid-renovation when the floods hit, but their standard home insurance didn’t cover the loss because the property was under construction.
   At the same time, insurance premiums across the UAE rose by 10–15% after these incidents, as companies reassessed flood-related risks.
   Solution: If the homeowner had taken a short-term renovation policy with flood and material damage cover, most of those repair costs could’ve been claimed.

Renovation Insurance Cost in the UAE

Here’s an idea of the cost of renovation insurance in the UAE:

Mistakes to Avoid When Buying Renovation Insurance

Here are common traps many Dubai homeowners fall into:

• Starting Work Before Insurance Activation
• Assuming Contractor’s Insurance Covers You
• Skipping Third-Party Coverage
• Not Updating Your Home Insurance After Renovation

FAQ

Protect the Home You’re Investing In

Renovation is never entirely risk-free. From accidental leaks to structural mishaps, even the most experienced contractors can face unexpected challenges. That’s why renovation insurance isn’t just about meeting compliance requirements; it’s about securing peace of mind.

A well-structured policy can save you thousands of dirhams, safeguard your property, and ensure your dream transformation doesn’t turn into a financial setback.

Let Hausfit Make It Effortless

At Hausfit, we handle your renovation with expert care, complete compliance, and the right insurance coverage — so you can focus on the excitement of creating your dream home, not the risks behind it.

Start your renovation journey with Hausfit — where every project begins with protection and ends in perfection.