Insurance, liability and risk on a managed property

Short-term letting changes the risk profile of your property. Occupancy turns over frequently, more people pass through the unit, and the building, the guest and the operator each carry part of the exposure. This article explains which risks we manage, which stay with you as owner, and what you should have in place before your unit goes live.

Who carries what

What we cover as operator

As your managing operator we hold and maintain the operational cover and controls required to run a licensed holiday home business in Dubai:

• Registration and renewal of the holiday home permit with DET (formerly DTCM) for your unit, and the tourism fee and reporting obligations that go with it.
• Guest identity verification and registration as required by DET (formerly DTCM) and the Dubai authorities.
• Screening and supervision of our own housekeeping, maintenance and guest relations staff, and of the contractors we appoint.
• Third-party liability insurance in our name, with the properties we manage included as insured locations. The policy schedule is available from Owner Support on request.
• Security deposits taken from guests and used against damage where applicable (see below).
• Incident response: attending the property, stopping ongoing damage, arranging emergency make-safe works, and reporting to you.

What remains your responsibility as owner

• Insuring the physical unit — structure, fixed finishes, kitchens, bathrooms, built-in wardrobes, flooring, glazing.
• Insuring the contents and furniture inside the unit, including appliances and electronics.
• Your share of the building's master policy and any deductible the owners' association passes to unit owners.
• Service charges, and keeping the unit in a lettable, safe and compliant condition.
• Disclosing the short-term letting use to your insurer and keeping the policy valid.
• Any mortgage, developer or owners' association restriction on short-term letting — you must confirm your title deed, mortgage terms and community rules permit holiday home use.
• Pre-existing defects, latent defects, and wear and tear.

Insurance we recommend you hold

Guest damage and the security deposit

A refundable security deposit is taken from guests as a first line of recovery against damage found at check-out.

• A deposit is charged to all guests, with two exceptions.
• Guests booking through Airbnb and through Homes & Villas by Marriott International are deposit-exempt, because those platforms operate their own damage resolution processes.
• Where no deposit is held, damage is pursued through the platform's own claim process instead.

How a damage event is handled:

1. Housekeeping or the guest relations officer identifies the damage, normally at check-out inspection.
2. We photograph and document the damage, and record it against the booking.
3. We obtain a repair or replacement quote.
4. Where a deposit is held, we deduct the substantiated amount and refund the balance to the guest. Where no deposit is held, we file a claim with the platform.
5. We report the outcome to you and, if the recovery does not cover the loss, tell you what remains for your insurer or for you to absorb.
6. Where the damage exceeds the deposit or the platform limit, or involves damage to neighbouring units, we escalate to you for an insurance claim decision.

Deposit amounts, deduction thresholds and the timeframe for pursuing a claim: the deposit is set per booking from the property type and length of stay and held on the guest's card; any claim is raised from the check-out inspection before the deposit is released, 7 to 14 banking days after check-out. A deposit is not taken on every booking: some platforms, Airbnb among them, do not allow hosts to take one, so a deposit is never guaranteed.

Liability to guests and third parties

• Injury arising from the condition of the property — faulty balustrade, defective water heater, poor waterproofing, structural defect — is an owner exposure and is why third-party liability cover matters.
• Injury arising from how the property is operated or serviced — an act or omission by our staff or appointed contractors — is our exposure.
• Damage to other units in the building caused by an escape of water or fire originating in your unit is an owner exposure, regardless of who was staying at the time, and is usually recovered by the affected owner from you.
• Fines or penalties imposed on the property or the permit as a result of guest behaviour are handled first through the guest and the deposit, and then reported to you.

Maintenance, defects and the duty to repair

Insurers expect a property to be maintained. Deferred maintenance is the most common reason a claim is reduced or refused.

• We report defects to you as they are found and arrange repairs within the spend authority set in your management agreement — above that limit we ask for your written approval before any work starts.
• Emergency works needed to stop ongoing damage or to make the property safe are carried out immediately and reported to you afterwards.
• Where you decline or delay a recommended repair, we record the recommendation and the decision. If the defect later causes a loss, your insurer will see that record.
• Routine servicing of air conditioning, water heaters and appliances is chargeable to you and is a condition of most policies.

Compliance and the permit

• The holiday home permit issued by DET (formerly DTCM) is held for the unit and must remain valid for every night the property is occupied by a guest.
• Operating without a valid permit exposes the property to fines and to the withdrawal of the permit — and can invalidate any insurance placed on a short-let basis.
• You must keep the title deed, Ejari or ownership documentation and Emirates ID or passport copies current with us so the permit can be renewed without a gap.
• Community rules, access card issuance and any building-specific holiday-home restriction remain matters between you and your owners' association; tell us of any change so we can adjust operations.

When you stay in your own property

Owner stays are booked through us so the calendar, access and cleaning are handled correctly. A cleaning fee applies to owner stays; the current amount is shown in the owner portal, which is kept up to date. During an owner stay the unit is not under a guest booking, and any damage occurring in that period is an owner matter rather than a guest recovery.

Before your property goes live

• Insurer notified in writing that the property is let to short-stay guests, and confirmation received.
• Buildings, contents, public liability and loss of rent cover in place, with holiday-let wording.
• Policy schedule and renewal date sent to info@deluxehomes.com.
• Title deed, mortgage terms and owners' association rules checked for any short-term letting restriction.
• Ownership and identity documents supplied for the DET (formerly DTCM) permit.
• Inventory list agreed and valued, so a contents claim can be substantiated.
• Any known defect disclosed to us in writing before the first guest arrives.

Getting in touch

• Phone or WhatsApp: +971 (4) 392-0202
• Email: info@deluxehomes.com
• In an emergency — fire, flood, gas, medical or crime — contact local emergency services first, then call us.

The precise allocation of liability between you and Deluxe Holiday Homes is governed by your signed management agreement. Where this article and that agreement differ, the agreement prevails — in the agreements in use today, see Section F (Indemnification), which also limits our liability, and Section G (Owner's Insurance). Always read these against your own signed agreement, as versions differ.