Rain in the UAE: repairing Dubai homes after the rain

real estatewill need to verify its 10-year “construction warranty,” real estate insurance in theDubai: For recently completed freebiesreal estatein Dubai, the current 10-year “construction work warranty” should be sufficient to solve most of the problems caused by last week's downpour and subsequent flooding in thehouses. For new properties that are less than 1 year from completion and delivery, owners will also have additional protection under a “defects liability period.” Under this coverage, contractors associated with the project will be required to repair any construction defects that may arise during this period, according to market sources.

Under these two programs - 10-year warranty and defect liability period - most of the problems faced by property owners can be rectified, the sources added. In addition, the Dubai Land Department has obliged all management companies toreal estateanddevelopersprovide a range of services - at no additional cost to affected owners. These include monitoring and documenting rain damage during the insurance coverage period. Even in areas affected by the storm, there have beenhousesthat came out of the situation without damage, either because they were elevated or because they had better drainage systems. - Mark Richards or Luxury Property

“Beyond that, and what many buyers don't know, is that each building component has its own warranty with its own expiration date,” said Titian Raab, a spokesperson for Azizi Developments. “For example, waterproofing comes with a 10-year warranty that must be honored by the contractor or subcontractor.”

Property owners, their developers and property management companies, contractors and insurance companies will begin assessing rain damage this week. The process could take a week or two before claims begin to be processed, insurers add.

What should property owners do?

According to sources, increasing the guarantee period may not be appropriate unless property owners are willing to pay out of their own pockets.

“I don't think changes will be made to the guarantee period, simply because it is a rare and completely unforeseen event,” said Mark Richards, managing director of Luxury Property, a Dubai-basedagenciesreal estate.

“Currently, structural warranties are 10 years, while warranties on appliances and indoor items such as air conditioners and water heaters range from 12 months to 2 years.” - Fintan Flannelly of Allsopp & Allsopp

Take Property Insurance Every property owner knows the value of property insurance. Or they should have already known the importance of having it in place. While all those homeowners with existing mortgages should take out property insurance, the decision on whether or not to have this coverage is entirely up to the individual if they don't have any mortgages they need to worry about.

"After a rainstorm, it seems counterproductive to take out a new insurance policy on ahousebut that's what they have to do. Judging from the images of water accumulation, it is the insurance companies that are responsible for the repair costs incurred by the communities and owners. Insurance coverage, as well as budgets specifically allocated for major repairs in the community, are covered by annual maintenance fees paid by the owners" - Titian Raab of Azizi Developments

What should new buyers of pre-foreclosure properties do?

“Today's buyers are better educated than they used to be and in many cases are aware of the 1-year DPL and 10-year warranty provided by the Shared Ownership Act,” said Fintan Flannelly, head of sales from thedeveloperAllsopp & Allsopp. "This information should be reflected in the contract of sale and the buyer should retain a copy of this document.

I would also advise any client who is looking to purchase areal estateon a pre-order, scrutinize the builder and also memorize the main contractors working on the project. "If something happens, the RERA-approved managing agent appointed by thedeveloper- instead of the previous “owners association” - must have this information.

"In the future, I think buyers will pay more attention to developments related to location and elevation within the community. This will reduce the risk of damage to their properties from potential flooding should last week's event become more frequent in future years."