Property All Risk Insurance in the UAE

Property All Risk Insurance, commonly known as PAR Insurance, may cover eligible sudden and accidental physical loss or damage to property declared in the policy schedule. Cover remains subject to the issued policy wording, insured values, limits, deductibles, conditions and exclusions.

The policy may be relevant to businesses, property owners, landlords, tenants and other parties with an insurable interest in buildings, contents, stock or equipment. The property, location, occupancy, activities and values must be accurately declared and accepted by the insurer.

What Property All Risk Insurance May Cover

Depending on the issued policy, insured property may include:

1. Buildings: Declared offices, shops, warehouses, factories or other structures for which the insured has an insurable interest.
2. Contents: Furniture, fixtures, fittings and office equipment situated at the insured premises.
3. Machinery and equipment: Declared machinery and operational equipment, subject to the applicable basis of cover.
4. Stock: Declared raw materials, finished goods or merchandise, subject to valuation and storage conditions.
5. Tenant improvements: Declared alterations, improvements or fit-out works for which the insured is responsible.

Loss caused by events such as fire, lightning, explosion, accidental impact, storm, flood, water damage, theft or malicious damage may be covered only when the cause falls within the issued wording and is not excluded.

The term “all risk” does not mean that every incident or type of damage is insured. A valid claim must involve insured property, occur during the policy period and arise from an event covered by the policy.

Who May Need Property All Risk Insurance?

The policy may be considered by:

1. Owners of commercial buildings and business premises.
2. Tenants responsible for contents, equipment or fit-out works.
3. Retailers, offices, warehouses and hospitality businesses.
4. Manufacturers and businesses holding machinery or stock.
5. Landlords with insured property or rental interests.
6. Borrowers required to arrange property insurance by a lender.

Important Policy Conditions

1. Property description: Buildings, contents, machinery and stock should be accurately described in the proposal and policy schedule.
2. Insured values: Values should follow the basis required by the policy, such as reinstatement value, replacement value or another agreed basis.
3. Underinsurance: If declared values are lower than the value required by the policy, an average or underinsurance condition may reduce an otherwise eligible claim.
4. Occupancy and activities: The nature of the business, processes, storage arrangements and use of the premises should be disclosed.
5. Protective measures: Fire-protection, security, maintenance and other agreed safeguards should remain operational.
6. Material changes: Changes to the premises, occupancy, activities, construction, values or storage arrangements should be disclosed.

Optional Property Extensions

Subject to underwriting acceptance, extensions may be considered for debris removal, professional fees, temporary removal, inland transit, architects’ or surveyors’ fees, loss of rent, alternative accommodation or property belonging to others.

These items are not automatically included. Each extension must be stated in the issued policy and may have its own limit, deductible and conditions.

Business Interruption and Loss of Income

Property All Risk Insurance generally addresses eligible physical loss or damage to insured property. It does not automatically cover loss of revenue, gross profit, rental income, standing charges or additional operating expenses caused by an interruption.

These financial losses may require separate Business Interruption Insurance. Such cover normally depends on insured physical damage being accepted under the related property policy and is subject to the selected indemnity period, time excess, limits and financial declarations.

Common Exclusions and Limitations

Property All Risk policies commonly exclude or restrict:

1. Wear and tear: Gradual deterioration, corrosion, erosion, ageing or lack of maintenance.
2. Existing or known damage: Damage or defects known before the policy started.
3. Defective property: Loss associated with defective design, materials or workmanship may be excluded or limited.
4. Mechanical or electrical breakdown: Internal breakdown may require separate Machinery Breakdown Insurance.
5. Unexplained losses: Unexplained disappearance, inventory shortages or losses discovered only during stocktaking.
6. Consequential loss: Loss of profit, use, market, contracts or rental income unless separately insured.
7. Cyber and data loss: Electronic data, cyber incidents, malware and unauthorised access may require separate insurance.
8. Excluded events: War, nuclear risks, confiscation, deliberate acts and other exclusions stated in the policy.

What to Do After Property Damage

1. Protect people and contact emergency services where necessary.
2. Take reasonable steps to prevent further physical damage.
3. Notify Al Buhaira Insurance as soon as reasonably possible.
4. Report theft, burglary or malicious damage to the police.
5. Preserve damaged property unless removal is necessary for safety.
6. Keep photographs, reports, invoices and ownership records.
7. Do not approve major repairs or disposal without prior agreement, except for urgent safety measures.

How to Request a Quotation

Businesses and property owners can submit initial information through Al Buhaira Insurance’s dedicated Property All Risk quotation page. The assessment may consider the property type, construction, occupancy, location, insured values, activities, fire protection, security measures, storage arrangements and claims history.

A quotation does not confirm that insurance cover has started. Cover begins only after the required information has been reviewed, the offered terms have been accepted and the applicable policy documents have been issued.

Documents Required

The insurer may request documents and information such as:

1. Completed proposal or quotation form
2. Trade licence and company details
3. Property ownership or tenancy documents
4. Property address and occupancy details
5. Building, contents and equipment schedule
6. Stock values and storage details
7. Replacement or reinstatement valuations
8. Building construction and age details
9. Site plans, photographs or survey reports
10. Fire-protection and security-system details
11. Previous insurance details and claims history
12. Lender, landlord or contractual insurance requirements

Why Choose Al Buhaira Insurance?

1. Property insurance range: Property All Risk Insurance is available within Al Buhaira Insurance’s property insurance products.
2. Dedicated quotation page: Customers can submit initial property and business details online.
3. Property-based assessment: Quotations can consider the declared premises, values, occupancy, activities and requested extensions.
4. Policy enquiries: Customers may contact Al Buhaira Insurance regarding issued schedules, conditions, deductibles and endorsements.
5. Claims enquiries: Policyholders can report incidents and submit relevant documents for assessment under the issued policy.

Frequently Asked Questions