The Real Estate Regulatory Authority (RERA) recently announced a legislation that will force developers to take responsibility for any structural issues with buildings for a period of 10 years after its completion.

This is an important step and should help remove what has been a grey area in terms of responsibility and, no doubt a cause for concern for potential investors who have previously had no clear legal recourse when issues have arisen after handover.

Under the new ruling, the developer of a project will be liable for any structural damage, such as cracks in the walls, for 10 years. In addition, the developer will be liable for repairing mechanical, electrical or plumbing related problems that arise from defective installations for the period of one year after completion.

This legislation adds further clarity to the issues of maintenance of buildings, following in the footsteps of the new strata law. Under strata, Home Owners Associations (HOA), will be set up in jointly owned buildings to take over responsibility for the management, operation and maintenance of all common areas, including entrances, lifts, gyms, swimming pools and parking areas.

Responsibility

The HOA will be responsible for ensuring the building is maintained to the required standard in order to protect the owner's investments. In addition, the HOA will also maintain comprehensive insurance for the property and will act as beneficiaries of this insurance, with each unit owner required to contribute to the insurance premium.

Speaking of insurance, I read an article recently that said that only five per cent of residents in the UAE have home insurance and home contents insurance - fact I found rather surprising.

With home insurance in its infancy here, the importance of having adequate insurance cover often only comes into prominence following an accident or some kind of disaster, such as the flooding experienced by some as a result of the recent heavy rainfall in the UAE.

When dealing with high value assets such as a home and its contents, you would assume that for peace of mind most people would have an insurance policy in place. I imagine that the transient nature of Dubai has impacted this in the past.

With many people only here for the short term they may be avoid investing too heavily in home furnishings and therefore, have not been too concerned about insuring their belongings.

Insurance cover should be a basic requirement for all property owners as it takes away all concerns and reduces the chances of having to face hefty and unexpected bills. It also ensures that your most valuable assets are protected, therefore making the cost of a premium a small price to pay.

As the property market grows here and the number of end users increases, I believe this pattern will change and the market for home insurance and home contents insurance will grow. It is important that building owners are covered for all eventualities.

I understand that RERA has made it mandatory for all owners of freehold property to take out adequate buildings insurance. Also, when taking out a mortgage to buy a property here, both life and home insurance, are now compulsory.

With the strata law helping to iron out issues surrounding the responsibility for maintenance and insurance of buildings, and this new legislation placing liability in the hands of developers for any structural repairs and defects, investors in Dubai should now have more peace of mind and a greater assurance that the relevant procedures are in place to protect the long-term value of their assets.

With home insurance in its infancy here, the importance of having adequate insurance cover often only comes into prominence following an accident or some kind of disaster.

The writer is managing director of Better Homes.