Tim Elliott
Welcome to Lawgical, the UAE’s first and only regular legal podcast. I’m Tim Elliott, here with our expert, managing partner of the Dubai-based legal firm HPL Yamalova and Plewka, Ludmila Yamalova. Always good to talk to you, Ludmila.
Ludmila Yamalova
Tim, likewise, always a pleasure to be speaking with you.
Tim Elliott
It seems like the only thing we’re talking about lately, and I’m very comfortable with this as an English person, is the weather. Last week’s storm brought the most rainfall in a single day in this region since records began, possibly marking it as the most severe storm the area has ever seen—almost a foot in less than 24 hours. This storm led to flooding, with homes and cars being abandoned. Very tough times for many people. I’d like to discuss property damage caused by this recent storm for homeowners. Let’s start with homeowners’ rights and obligations. What are the general options?
Ludmila Yamalova
Yes, indeed, it’s been a challenging time for many, especially for homeowners in the UAE, some of whom may have bought properties quite recently and are now dealing with the aftermath. In terms of what homeowners can do, their rights and options depend on several factors.
Tim Elliott
Yeah.
Ludmila Yamalova
The response depends on the nature and extent of the damage, where the damage occurred in the home, and, importantly, the cause—whether it was wind, water, pounding rain on windows, or flooding. Also, did water enter from the ceiling, or did it come from a neighboring unit? There are many different ways damage can occur. In my own community, days later, people were still panicking as water continued to leak down from units above.
So the type of damage, cause, age of the property, or time since you took possession, and most importantly, whether the homeowners had insurance or not, all come into play. There is such a thing as homeowners insurance, and in many cases, the rights and options available to homeowners depend on whether they had insurance.
Tim Elliott
Let’s go deeper into that. Why is homeowners insurance so important, and what exactly is covered?
Ludmila Yamalova
Yes, generally, property damage from rain in the UAE would fall under homeowners insurance. This insurance typically covers two things: the structural aspects of the property—like damage to the roof, floors, windows, walls, balconies, terraces, and other attached facilities—and damage to the home’s contents, such as furniture, carpets, and other assets.
Unlike tenants’ content insurance, which covers only their personal belongings, homeowners insurance generally includes both the structure and contents. So as a homeowner, you usually don’t need a separate content insurance policy.
Tim Elliott
So it sounds like homeowners insurance should cover damage from the recent storm and flooding, but I’m guessing it’s not that straightforward.
Ludmila Yamalova
Indeed, it’s quite nuanced legally. Many insurance policies, both in the UAE and in other countries with more developed insurance industries, often exclude damage from certain events, like floods, drain backups, standing water, and various other sources. For instance, in the US, in addition to homeowners insurance, there’s a specific flood insurance policy for those in flood-prone areas.
Here in the UAE, homeowners with insurance should carefully review their policies to understand if flood damage is excluded. If the policy excludes floods, the extent of coverage will depend on the cause. For example, rain that causes a leaky roof might be covered, even if floods are excluded, since the immediate cause was rain, not a flood.
Tim Elliott
Got it. So for those like me who usually skip instructions on flat-pack furniture, reading the fine print here is a must. Now, would you classify the recent storm damage as storm damage or flood damage?
Ludmila Yamalova
That’s the million-dollar question. Generally, if a home’s roof is damaged during a storm, or if rain leaks into the house, it’s considered water, not flood, damage. But if the floors are damaged because water came in from outside due to flooding, that could be classified as flood damage, even though the rain caused the flood.
We haven’t seen many claims of this nature yet, but as cases go to court, we’ll gain more clarity on how local courts classify these events. We’ll definitely do a follow-up once we have more insight.
Tim Elliott
What about homeowners who feel their properties sustained serious damage because of poor construction?
Ludmila Yamalova
There are certainly cases like this, and we’re already hearing from clients with these concerns. Some have properties that are brand new or deemed luxurious, yet when the rain came, basic issues—like leaking through windows or walls—arose.
Homeowners in the UAE do have legal rights to pursue claims against developers for construction defects. They can request repairs from the developer or file a case if necessary.
Tim Elliott
How do you define a construction defect?
Ludmila Yamalova
A construction defect typically refers to flaws in a building’s structure that lead to reduced performance, value, or safety. Specific issues might include water intrusion, faulty electrical wiring, inadequate insulation, and improper drainage.
Tim Elliott
How does UAE law handle construction defect claims?
Ludmila Yamalova
The UAE Civil Transactions Law, Federal Law No. 5 of 1985, addresses construction defects in Article 880.3, which provides owners with rights against developers or contractors responsible for such defects. This law is federal, so it applies across all emirates.
Tim Elliott
Can a homeowner bring a claim against a developer at any point?
Ludmila Yamalova
No, there’s a statute of limitations. Owners have 10 years from the property’s handover date to bring a claim. There’s also a three-year limit for claims for compensation, which starts from when you discover the defect. So, if you’ve known about a leaky roof for more than three years, your claim may be time-barred.
Tim Elliott
After this storm, I’m guessing there will be more claims for construction defects. How would you file such a claim?
Ludmila Yamalova
First, document the defect. Contact the developer, request repairs, and ideally attach evidence like photos, videos, and even a contractor’s report. If the developer refuses, you’ll need to file a claim in court, using all the gathered evidence.
Tim Elliott
What type of evidence should homeowners gather to support their claims?
Ludmila Yamalova
Photos and videos are powerful. A contractor’s report detailing the damage and its likely cause can also be beneficial. Documentation of communication with the developer and any refusal to cooperate will also support your case.
Tim Elliott
If a developer agrees to fix the issue, can they use their own contractors and methods?
Ludmila Yamalova
Yes, but you should request a detailed job description of the repairs and have an engineer sign off on the work to ensure it’s done to standard. Some homeowners opt to use their own contractor to avoid any potential shortcuts.
Tim Elliott
What if a developer flat-out refuses to entertain a claim?
Ludmila Yamalova
In that case, you’d file a construction defect claim in the local court, where the property is located. You’d rely on your evidence and UAE Civil Transactions Law provisions to make your case.
Tim Elliott
Can you cite any successful court cases on construction defects?
Ludmila Yamalova
Yes, there are several successful cases. Courts often appoint experts to assess damage and determine compensation. Construction defect claims are well-established under UAE law, and with the right evidence, courts have ruled in favor of homeowners.
Tim Elliott
Dubai has many new housing developments. What’s your prediction for how these newer builds will hold up?
Ludmila Yamalova
I think some reputable developers will take responsibility and repair issues at their cost. We’ve seen statements from developers like EMAAR, who’ve committed to covering certain repair costs. Other developers might need more persuasion, and some may even refuse entirely, leaving homeowners to pursue court action if necessary.
Tim Elliott
Final thoughts?
Ludmila Yamalova
Number one: homeowners insurance. While not common here, especially for high-value properties, it’s worth having. And for those about to purchase or take handover of a property, consider an independent inspection. Knowing the property’s condition gives you leverage for repairs before purchase or possession.
Tim Elliott
That’s Lawgical, covering property rights and options for homeowners dealing with damage from the recent UAE storm. Thanks, as always, to our legal expert, managing partner Ludmila Yamalova.
Ludmila Yamalova
Thank you, Tim. Always a pleasure.
Tim Elliott
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