What is construction damage insurance?

The construction damage insurance is applied to guarantee the cost of repair when a disruption occurs during the construction of a house. This building is indeed subject to alterations during construction, but other chaos can occur. This is for example the case for renovation and/or extensions in height or length. In any case, the law requires that you take out a construction damage insurance policy.

What is construction damage guarantee?

Generally speaking, construction work requires that those responsible sign a contract regarding the project. It is then important to get insurance against possible damages that may occur later. In any case, the work must not jeopardise the soundness of the house or building so as to render it uninhabitable later on. That said, the construction damage insurance protects the insured against inconveniences caused by poor construction or a defect in the renovation. It is the insurer's responsibility to compensate the insured without any liability on the part of any party involved. This compensation follows the reimbursement to the insurer of the owner's ten-year liability. This commitment is valid for a period of 10 years.

Risks covered by the construction damage insurance

Any client or contractor should be familiar with the regulations governing construction, renovation or repair of a property. They should not deny the existence of the various insurance coverages. These include mainly the costs of damage that makes the building uninhabitable. There are also types of damage that involve the builder's civil liability. Subsequently, if the building site is abandoned, the insurance takes effect immediately for the benefit of the insured. Furthermore, defective constructions can be covered by the construction damage insurance or by the ten-year guarantee. Thus, the compensation is usually used to meet the financial needs of the repair work without the court having yet reached a verdict. However, the coverage of doors and windows is not concerned, as well as fire and natural disasters.

The parties who subscribe to construction damage insurance

The subscription to building damage insurance depends to a large extent on the client, who may be the property promoter. The building promoter must ensure that the construction, renovation or repair work is properly completed. The owner of the house may take out such insurance, or the co-ownership syndicate in the case of an apartment building, etc. The company, the agent or the private individual can take out insurance without any problem. However, there are risks for those who ignore this compulsory insurance. They may be subject to serious criminal sanctions.

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