Most Maldivian families put the bulk of their savings into their home. Yet many homes, especially older family houses and rented flats, are not insured at all. A fire in a crowded Malé building, a burst water tank, storm damage or a sea surge can wipe out years of savings. This guide explains how home insurance works in the Maldives, what to cover as an owner or landlord, what banks require, and how to make sure a claim is paid.
Policies, insurers and terms vary. Use this as a checklist when you talk to insurers, and always read the policy wording before you sign.
Who offers home insurance?
Several insurers and takaful providers in the Maldives offer property cover, including the state-owned national insurer and private companies, some of them linked to banks. Many policies are arranged when you take a home loan, because the bank requires cover. Others are bought directly by owners and landlords. Ask at least two or three providers for quotes and compare the cover, not just the price.
The main types of cover
| Cover | What it protects | Who needs it |
|---|---|---|
| Buildings | The structure, walls, roof, fixed fittings, built-in kitchen and bathrooms | Owners of houses and whole buildings; flat owners for their unit if not covered by a building policy |
| Contents | Furniture, appliances, electronics, clothes and valuables | Everyone, including tenants |
| Landlord cover | Building plus landlord's furniture, sometimes loss of rent and liability | Anyone who lets property |
| Public liability | Claims if someone is injured on your property | Owners and landlords, especially with shared areas |
| Mortgage-linked life cover or takaful | Pays off the loan if the borrower dies | Often required by banks |
Risks to insure against in the Maldives
Fire
Dense buildings, older wiring and heavy air-conditioning loads make electrical fires a real risk in Malé. Fire is the most basic cover and should always be included.
Water damage
Leaking rooftop tanks, burst pipes and leaks from the flat above are common causes of damage. Check that "escape of water" is covered.
Storm, flood and sea surge
Swells and storms during the south-west monsoon can flood ground floors and damage seafront buildings. Some policies exclude flood or treat it as an add-on. If you live near the shore or on the ground floor, make sure it is included.
Theft
Contents cover usually includes theft with signs of forced entry. Check limits for jewellery, cash and electronics.
Accidental damage
Optional cover for things like a dropped television or a broken glass table. Useful for families with young children.
Loss of rent
For landlords, this pays the lost rent if the flat cannot be let while it is repaired after an insured event.
What banks require
When you take a home loan or Islamic home financing, the bank will usually require the property to be insured for at least its rebuilding value, with the bank noted as an interested party. Many banks also require life cover or takaful so that the loan is cleared if the borrower dies. Ask the bank:
- Which perils must be covered.
- Whether you can choose your own insurer or must use theirs.
- Whether premiums are paid upfront, yearly or added to the loan.
MIB, for example, notes that takaful is paid upfront on its home financing. Compare lenders and their requirements in BML vs MIB vs HDFC and BML Islamic home purchase financing.
Flats: who insures what?
In a building with many flats, the structure and shared parts (roof, lift, stairs, water tanks) are often the responsibility of the building management or the owners collectively. Ask:
For sale nowFrom MVR 3.6M1+1 Bedroom Apartments at Bayfancy · Hulhumalé- Does the building have a policy covering the structure and shared areas?
- What does it cover, and is it paid through the service charge?
- What is your own flat's responsibility: internal fittings, kitchen, bathroom, your contents?
If there is no building policy, owners may need to arrange cover together or individually. Read service charges and building management.
How much cover do you need?
Buildings
Insure for the rebuilding cost, not the market value. In Malé, much of a property's market value is the land, which does not burn down. A builder or quantity surveyor can estimate the cost of rebuilding, including demolition and professional fees. Construction costs have risen with imported materials, so review the figure every year or two. See the cost to build a house in the Maldives.
Contents
Walk through each room and list what it would cost to replace everything new. Families are often surprised: air conditioners, appliances, furniture, phones and laptops quickly add up to hundreds of thousands of rufiyaa.
Under-insurance
If you insure for less than the true value, many policies reduce claims in proportion. Insuring a MVR 2 million building for MVR 1 million could mean only half of a partial claim is paid.
Landlords: extra points
- Tell your insurer the property is let; standard home policies may not cover rented property.
- Include furniture you supply in a furnished flat.
- Consider liability cover for tenants and visitors.
- Consider loss-of-rent cover.
- Require tenants to report leaks and damage promptly in your rental agreement.
Insurance is a cost to set against rent when working out your net return; see rental yields in Hulhumalé and Malé.
Tenants
A landlord's policy does not cover tenants' belongings. If you have valuable furniture or electronics, a contents policy is inexpensive peace of mind. Expatriate tenants should also check whether their employer or international insurance covers personal belongings. See renting as an expat.
Reducing risk (and premiums)
- Have old wiring checked and upgraded, especially if you run several air conditioners.
- Install smoke detectors and keep a fire extinguisher in the kitchen.
- Service water tanks, pumps and water heaters.
- Fit secure locks and, for ground floors, window grilles.
- Seal roofs and balconies before the monsoon.
Some insurers offer lower premiums for well-protected properties. Even where they do not, prevention avoids the disruption of a claim.
Making a claim
- Act fast. Stop further damage if it is safe, for example by turning off water.
- Tell the insurer immediately and follow their instructions.
- Report theft or fire to the police or fire service and get a report number.
- Take photos and video of the damage before cleaning up.
- Keep damaged items until the insurer has seen them, if possible.
- Collect receipts for emergency repairs and the items lost.
Keeping a simple inventory with photos and receipts, updated each year, makes claims much easier.
Houses on local islands
Homes on local islands face different risks from flats in Malé. Many are older, closer to the shore and built with less fire separation from neighbours. Repairs also cost more, because materials and workers have to be brought in by boat. If you own a family house on your home island, check whether insurers will cover it, whether a survey is needed, and how claims would be assessed from Malé. Keep good photos of the house and receipts for major work, so the insurer can see its condition. If you plan to rebuild, read the cost to build a house to set a realistic sum insured.
Questions to ask before buying a policy
- Which perils are covered, and which are excluded?
- Is flood, storm and sea surge included?
- What is the excess (the amount you pay on each claim)?
- Are there limits on single items or valuables?
- Is the property covered if it is let or empty for long periods?
- Is cover on a new-for-old or depreciated basis?
- How quickly are claims paid, and in which currency?
Frequently asked questions
Is home insurance compulsory in the Maldives?
It is not generally required by law for homeowners, but banks usually require property insurance, and sometimes life cover or takaful, as a condition of a home loan.
Does home insurance cover flooding in the Maldives?
Some policies include flood, storm and sea surge, others exclude them or offer them as add-ons. Read the list of insured perils and exclusions carefully, especially for ground-floor and seafront property.
What is takaful?
Takaful is Islamic insurance based on mutual cooperation. Takaful products for property and life are available in the Maldives and are often used alongside Islamic home financing.
Do tenants need insurance?
The landlord's building insurance does not cover a tenant's belongings. Tenants who want their furniture, electronics and valuables covered need their own contents policy.
