Comparison of Mandatory Real Estate Insurance in Morocco

Published on April 25, 2026 and written by Cyril Jarnias

The Real Estate Sector in Morocco and Mandatory Insurance

The real estate sector in Morocco is experiencing a unique dynamic, at the crossroads of global economic trends and local specifics, fueling growing interest in mandatory insurance related to property acquisition and ownership.

In this constantly evolving environment, it is crucial for potential buyers and property owners to navigate the available options with ease to ensure optimal protection of their real estate investment.

Comparison of Major Real Estate Insurance Policies

This article offers you a comparison of the main insurance policies that are required in the Moroccan legal landscape, highlighting not only their features but also their indispensable role in securing real estate transactions.

Understanding Home Insurance in Morocco

Home insurance in Morocco is an essential element of financial security for homeowners and tenants. It is divided into two main types of coverage: coverage for damage to real and personal property, and liability insurance.

Types of Home Insurance Available

In Morocco, multi-risk home insurance (MRH) is the most common form. It is intended for:

• Apartment owners
• Co-owners
• Tenants
• Owners of villas or single-family homes

These contracts are offered by several companies such as Wafa Assurance with its “Wafa Manzil” offer or Sanlam with “Assur’Habitation”.

Coverage Typically Offered

Basic Coverage	Optional Coverage
Fire and explosion	Theft and burglary
Water damage	Glass breakage
Natural disasters	Legal protection
Liability insurance	Home assistance

Liability insurance is a fundamental component that protects the insured in case of damage caused to third parties, such as when a fire spreads to a neighboring property.

Factors Influencing Insurance Premiums

The cost of home insurance in Morocco varies based on several criteria:

• The geographic location of the property
• The value of the property and items to be insured
• The type of housing (apartment or villa)
• The standard of the housing
• The security devices installed

How to Choose the Best Home Insurance

To select the insurance best suited to your needs:

1. Accurately assess the value of your real estate and personal property
2. Identify the specific risks related to your geographic location
3. Compare the different offers on the market
4. Check exclusions and compensation limits
5. Consider your budget

Concrete Examples of Offers on the Moroccan Market

The “Wafa Manzil” offer from Wafa Assurance provides comprehensive protection including:

• Coverage of assets
• Coverage of liabilities as head of household
• Protection of domestic staff in case of work accidents

For its part, “Assur’Habitation” from Sanlam offers a modular solution allowing each insured to benefit from personalized coverage according to their budget and specific needs.

Home insurance in Morocco represents much more than simple financial protection; it is also an essential preventive measure against the unexpected events of daily life. Repairs in the event of a claim can be extremely costly and significantly impact your finances if you are not properly insured.

The Importance of Liability Insurance for Property Owners

Liability insurance is a fundamental pillar of protection for real estate owners in Morocco. This coverage, often included in home insurance contracts, offers essential protection against risks related to property ownership.

Property owners in Morocco are exposed to various risks that may incur their liability. The home insurance contract generally covers two main types of coverage: damage to real and personal property, and liability insurance. The latter covers damage caused to third parties by the insured, their family members, and even their pets.

Potential Risks Covered by Liability Insurance

Liability insurance protects owners in many situations:

• Damage caused by the collapse or partial ruin of a building
• Water damage affecting neighboring apartments
• Accidents occurring in common areas (for condominiums)
• Injuries sustained by visitors on the property
• Damage caused by objects falling from the property

In Morocco, liability for buildings is established by the dahir (decree-law) on obligations and contracts, particularly in its article 89. According to this article, “the owner of a building or other construction is liable for damage caused by its collapse or partial ruin.”

Legal Obligations of Property Owners

Moroccan legislation imposes certain obligations on property owners:

• Owners of properties in condominiums must take out liability insurance to cover damage caused to third parties
• The owner’s liability is engaged when two essential conditions are met: that there is ruin and that this ruin results from a construction defect or lack of maintenance
• The owner is presumed strictly liable for the total or partial ruin of a building, whether or not the owner committed a fault

Comparison with Other Real Estate Insurance

Type of Insurance	Mandatory Nature	Main Coverage
Liability insurance in condominiums	Mandatory	Damage caused to third parties
General home insurance	Not mandatory	Damage to home and belongings
Mortgage insurance	Required by banks	Protection of the financed property

Contrary to some misconceptions, home insurance is not mandatory in Morocco, but it remains highly recommended as it covers the costs of restoring the home and belongings in the event of a claim. However, liability insurance becomes mandatory within the framework of a condominium.

Practical Cases Illustrating the Importance of Liability Insurance

1. An owner whose apartment suffers a water leak that damages the apartment below will be held responsible for the damage caused.
2. If a balcony collapses and injures a passerby, the owner will be presumed liable under article 89 of the dahir on obligations and contracts.
3. In a condominium, if a facade element detaches and causes damage, the collective liability of the co-owners may be engaged.

Moroccan case law tends to strictly apply the principle of presumption of the owner’s liability in the event of damage caused by their property, hence the crucial importance of taking out adequate liability insurance to protect against these potentially significant financial risks.

Comparing Coverage for Rental Risks

The home insurance market in Morocco offers several types of coverage to protect tenants and owners against various risks. Currently, home insurance is not mandatory for everyone, which explains why the majority of homes damaged during the Al Haouz earthquake were not covered, leaving many families without financial protection.

Types of Insurance Available in Morocco

• Multi-Risk Home Insurance (MRH): Covers damage to real and personal property as well as liability insurance
• Rental Liability Insurance: Specific to tenants, it covers damage caused to the rented home (fire, water damage)
• Insurance against catastrophic events: Includes coverage against earthquakes (established by law no. 110-14)

Specific Coverage Offered

MRH offers various guarantees covering:

• Damage to the home (fires, water damage)
• Natural disasters
• Liability insurance (protection against disputes with third parties)
• Acts of vandalism
• Theft
• Glass breakage
>Assistance in case of temporary relocation

Additional options can be added for:

• Valuables
• Outdoor equipment

Comparison of Offers on the Moroccan Market

Aspect	Details
Number of insurers	13 approved insurance companies (including 4 operating in the Takaful sector)
Minimum cost	From 300 dirhams for an apartment
Variation factors	Value of the property and its furnishings
Main subscription	Essentially for homes acquired through bank financing

Legislative Context and Recent Developments

Multi-risk home insurance in Morocco is mainly taken out by:

• Real estate borrowers (required by their bank)
• It remains optional for owners who purchased without credit

A structural reform seems inevitable, as indicated by the current context. The Al Haouz earthquake highlighted the shortcomings of the current system, where the majority of damaged residences were unable to benefit from insurance against catastrophic events.

Concrete Application Example

In the event of a water leak from a neighbor’s home, the insurance company covers:

• The restoration work of the insured home
• Coordination with the neighbor’s insurer for operational follow-up

The home insurance market in Morocco appears to be in a development phase, with growing awareness of its importance following recent catastrophic events.