Property Insurance in the UAE: A Guide for Businesses
How to protect your premises, stock and income, set the right sums insured, and read flood and storm terms.
✓ Since 1995 · ✓ Central Bank of the UAE Reg. No. 081 · ✓ Compared across leading UAE insurers
A fire, flood or burst pipe can damage your premises, equipment and stock in hours, and keep your business closed for months. Property insurance pays to repair or replace what's damaged; business interruption insurance replaces the income you lose while you recover. This guide explains both, and what insurers need to quote. It's written by Al Berwaz Insurance Brokers, licensed by the Central Bank of the UAE (Registration No. 081).
Fire and Allied Perils or Property All Risks?
| Cover | How it works |
|---|---|
| Fire and Allied Perils | Covers only the events named in the policy, such as fire, lightning, explosion, storm and flood |
| Property All Risks | Covers physical loss or damage from any cause unless it's specifically excluded, so it leaves fewer gaps. Usually costs more |
What business interruption covers
If insured damage forces you to close or slow down, business interruption pays the gross profit you lose and the extra costs of keeping the business going, such as renting temporary premises, for an agreed indemnity period. Property insurance repairs the building; business interruption keeps the business alive while it's repaired.
Set the right sums insured
The sum insured should be the full cost of rebuilding or replacing your property and contents today, not what you originally paid. If you insure for less, most policies apply an average clause: the insurer reduces every claim in proportion to the shortfall, even small ones. Stock that changes through the year can be insured on a declaration basis, where you report stock values regularly and pay premium on actual values.
Flood and storm terms since April 2024
The UAE had its heaviest rainfall in 75 years in April 2024, and many insurers have since tightened terms for storm and flood. Common changes include higher deductibles for storm and flood claims, sub-limits for some items such as external fixtures, and exclusions for temporary or outdoor structures like car park sheds, canopies, tents and porta cabins. Read these terms carefully when comparing quotes.
Landlord or tenant: who insures what?
| Item | Usually insured by |
|---|---|
| Building structure | Landlord |
| Fit-out, equipment, stock and contents | Tenant |
| Lost income after damage | Each business for its own income |
Your lease sets out who is responsible for what, so check it before arranging cover.
How premiums are calculated
Insurers look at:
- the sums insured for buildings, contents, stock and business interruption
- how the building is constructed and what the premises are used for
- fire protection, such as sprinklers and alarms, and security
- the location, including flood exposure
- the deductibles you choose
- your claims history
What to prepare for a quote
- Locations: the address and use of each premises.
- Values: building, fit-out, machinery, contents and stock, at current replacement cost.
- Income: annual gross profit and how long it would take to recover after a major loss.
- Protection: fire safety and security systems in place.
- Claims history and current policy: past claims and your current schedule, if any.
Why use a broker?
An insurer can only offer its own wording. A broker compares insurers, checks sums insured and flood terms before you sign, and helps you through a claim. Broker commission is built into the insurer's premium, so using a broker doesn't add to your cost.
Got questions? We've got answers
Quick answers to other questions businesses ask us about property and business interruption cover.
Ask Us a QuestionCan we buy business interruption cover on its own?
Usually not. Business interruption normally only pays when the loss follows damage that's covered under your property policy, so the two are arranged together.
What is the indemnity period?
It's the maximum time the policy pays lost income after damage, for example 12 or 24 months. Choose a period long enough to rebuild, re-equip and win back customers, not just to repair the building.
Is our stock covered while it's at a customer's site or in transit?
Not automatically. A property policy covers the locations listed on it. Goods in transit need marine or goods-in-transit cover, and stock at other sites needs to be added to the policy.
How often should we review our sums insured?
At least once a year at renewal, and whenever you buy major equipment, expand, move or change your stock levels. Underinsurance can reduce every claim, not just large ones.
✓ Serving Abu Dhabi businesses since 1995
✓ Licensed by the Central Bank of the UAE (Reg. No. 081)
✓ Property and business interruption cover compared across leading UAE insurers
Sources:Emirates News Agency (WAM): UAE witnesses largest rainfall in 75 years. Checked October 2026.
This guide is general information, not legal advice. Terms differ between insurers. Cover is subject to the policy terms, conditions and exclusions of the issuing insurer.