Construction Damage Insurance
Convenience: Immediate pricing. Simplified subscription terms. No project management or soil study required for all work or construction projects under €300,000; coverage available for the weather-tight shell only.
Service: Personalized service. Feel free to call us.
Responsiveness: 24-hour structural damage insurance certificate to meet the needs of financial institutions or notaries promptly.
Security: A selection of insurers to ensure you are fully covered for the duration of your contract.
Construction damage insurance: how does it really work?
Your new house is covered by ten-year structural damage insurance (DO). This insurance will financially cover any defects without waiting for court decisions.
New houses are required to have a ten-year warranty against construction defects. On the one hand, the builder must have ten-year liability insurance, while on the other hand, the buyer is required to take out structural damage insurance. This insurance is mandatory.
It will cover the successive owner(s) for ten years against any risk of damage affecting the structure of their house (defects of a ten-year nature in legal terms). A significant safety net.
This insurance allows for the reimbursement and repair of defects that occur after the completion of the work and that engage the ten-year liability of professionals (builders, architects, project managers, contractors). Structural damage insurance must be taken out before the start of construction.
Home and structural damage insurance: what does the law say?
Construction insurance was established in January 1978 by the Spinetta Law. This mandatory insurance system operates on two levels. On the one hand, the builder takes out a ten-year warranty, and on the other, the homeowner takes out structural damage insurance. The latter is mandatory regardless of the project's legal framework (Articles L-242-1 of the Insurance Code and L-111-30 of the Construction and Housing Code). The contract for the construction of a detached house must specify the structural damage insurance policy number.
This insurance aims to guarantee, without any investigation of liability, the payment for repairs to damage incurred. It will cover the costs of restoring the house even before the builder intervenes, or if, for example, the builder has disappeared during this ten-year period. It is then up to the two insurance companies to reach an agreement between themselves.
Manufacturers must also ensure
All home builders, whether they are single-family home builders (under the 1990 CCMI law), architects, or project managers, must take out ten-year structural warranty insurance. These professionals are required to provide proof of this insurance. The regulated ten-year structural warranty insurance certificate, conforming to a standard template, must be included with quotes and invoices. The professional is liable for ten years in the event of damage, not only to the original owner (the client), but also to any subsequent buyers in the event of resale. Insured damage includes damage that compromises the structural integrity of the house or renders it unfit for its intended purpose (such as a crack in the ground causing uneven flooring, or a waterproofing defect). It also includes damage affecting the structural integrity of an integral component of the building (for example, a faulty electrical installation).
Structural damage insurance, ten-year warranty: what are the differences?
The main difference between structural damage insurance and the builder's ten-year warranty is primarily the speed of compensation. Structural damage insurance is designed to provide upfront financing for damages covered by the ten-year warranty. When a claim arises, determining the cause can be a lengthy, difficult, and even contentious process.
Unlike the builder's ten-year warranty, structural damage insurance aims to guarantee the rapid reimbursement or repair of defects covered by the ten-year warranty without waiting for court decisions, expert assessments, and counter-assessments. Indeed, in the event of a claim, it is not uncommon for the builder to shift responsibility onto another party. With each party passing the buck, the process can drag on for a long time. Hence the advantage of taking out insurance that provides compensation without a deductible and without waiting to identify those responsible!
What risks are covered by the insurance?
Structural damage insurance covers, for the duration of the builder's ten-year warranty, all physical damage compromising the structural integrity of the house, including damage resulting from a soil defect. It covers significant cracks in walls, floor subsidence, roof collapse, water infiltration through cracks in the facade or roof, and thermal insulation defects in the walls.
Damage affecting the structural integrity of fixtures and fittings that cannot be separated from the building is also covered. Inseparable fixtures and fittings are those whose removal, dismantling, or replacement cannot be carried out without damaging or removing part of the fundamental structure that supports them.
However, it does not cover movable parts such as doors and windows. This guarantee also does not apply to damage caused by the insured, nor to normal wear and tear, fire, or natural disasters (storms, floods, etc.). It can, but optionally, apply to intangible damages suffered by the owner or its occupants (damage due to loss of enjoyment of the house, for example).
Good to know
If a soil study (type G2 AVP) is carried out by a specialized engineering firm to define the nature of the subsoil and determine the foundations to be built, structural damage insurers grant a significant discount (up to 50%) on the premium. This is because claims related to the geological nature of the land become marginal.
How structural damage insurance works
Damage appears on your house—a crack in the facade, leaks? It all starts with filing a claim with your insurer. From the date the claim is received, the insurance company has a maximum of 90 days to resolve the issue. The insurance company will have to carry out the necessary repairs, which will have been determined and assessed by a single expert. It is then up to the company to seek recourse against the party or parties responsible for the damage.
It guarantees coverage for the original owner as well as subsequent owners, up to the duration of the ten-year warranty. Furthermore, it provides rapid compensation without waiting for court decisions, expert assessments, or counter-assessments. It allows for reimbursements or the execution of all repairs covered by the ten-year warranty, without waiting for a court ruling on individual responsibilities.
Selling a house without structural damage insurance
The failure to take out structural damage insurance does not prevent the notary from accepting the deed of sale, provided that the notary includes a specific clause mentioning the absence of this insurance, the foreseeable consequences, and a waiver of liability. Liability may be transferred to the buyer. This can then be a good argument for negotiating a lower price.
The bank may also refuse to grant the requested loan because the lack of structural damage insurance represents a risk, as the value of the collateral—in this case, the house—could be affected in the event of a claim.
The processing times for compensation claims
Unlike the builder's ten-year warranty, the compensation procedure for structural damage insurance is quick. The insurer is legally bound to respect deadlines:
- He has ten days (D+10) from the receipt of the claim to notify the insured that his claim is not considered complete and to request the missing information.
- The insurer has 15 days (D+15) to notify, without expert assessment, a proposed compensation or a refusal of coverage.
- He has 60 days (D+60) to notify the insured of the decision regarding the principle of triggering the contract's guarantees, based on the preliminary report previously sent to the insured. He may also propose, if necessary, an extension of the deadline for the compensation offer.
- Finally, the insurer has 90 days (D+ 90) to notify its compensation proposal in view of the expert report previously notified to the insured.
Damage to Structure
The law requires any project owner wishing to undertake construction work to take out structural damage insurance before the start of construction. This insurance allows for reimbursements or the execution of repairs covered by the ten-year warranty, without waiting for a court decision determining liability. The owner of the constructed dwelling is the beneficiary of the structural damage insurance. It is their responsibility to activate it if necessary.
The project owner is any individual or legal entity who, acting as the owner, seller, or agent of the building owner, commissions the work.