Friday, March 25, 2011

Dubai Homeowners have sleepless nights due to overhead costs

Dubai Homeowners struggling with their commitments on maintenance and service charges have another cost overhead to reckon with.


With owners’ associations having formally started to take control at various developments, individual owners are required to take out insurance on their own properties.


Failure to do so could end up costing them a lot more if some mishap originating within their property leads to widespread damage to the adjoining ones. But by the looks of it, the local freehold sector needs to go through a steep learning curve before homeowners start giving this issue a lot more thought.


“Individual owners — and even the owners’ associations — are generally ignorant of their insurance requirements and the types of cover available,” said Munroe Deysel, an independent insurance adviser on jointly-owned properties. “There is a lot of education required, not only as to what insurance is appropriate but also what is legally required.”


Therein lies the nub of the issue. In the absence of owners’ associations, it was the developer or the landlord who was legally required to take property insurance cover.


But these responsibilities are for the owners’ associations to bear as soon as they take over the running.


For the individual property owner, the transition from landlord to owners’ associations represents a world of difference.


(C) Zawya

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