The damage to work insurance is applied to guarantee the cost of repairs when a malfunction occurs during the construction of a house. This work is indeed subject to alterations during construction, but other flaws can occur, especially during renovation and/or extensions in height or length. Either way, the law requires that you take out a guarantee against damage to this kind of work.
What exactly is the guarantee of work?
Generally speaking, construction work requires those responsible to sign a contract governing the project. It is therefore important to take out insurance against any damage that may occur later. In any case, the work must not jeopardise the solidity of the house or building to the extent of rendering it uninhabitable later on.
That said, the damage to work insurance serves to protect the insured against inconveniences caused by poor construction or a defect in the renovation. This stipulates that it's the insurer's responsibility to refund the insured without any third-party intervention. This settlement follows the refund to the insurer of the owner's ten-year liability and runs for 10 years.
The risks covered by the damage to work insurance
Every client or project manager must be familiar with the regulations governing the construction, rehabilitation or repair work of a property. They should take into consideration the various insurance-related coverages, which mainly include the costs of damage that could make the house uninhabitable. It's worth noting that some types of damage also involve the builder's civil liability. However, if the building site is abandoned, the insurance takes effect immediately for the benefit of the insured.
Moreover, defective constructions can be covered by the damage to work insurance or by a ten-year guarantee. Thus, the compensation is usually used to meet the financial needs of the repair work without the court having yet rendered a verdict. However, one must be aware that coverage for windows and doors is not covered, nor are fire and natural disasters.
Who should take out building damage insurance?
The purchase of construction damage insurance depends largely on the client, who may be a property developer. The latter must ensure that the construction, renovation or repair work is properly completed. The owner of the house may take out such insurance too, same for the condominium syndicate in the case of an apartment building. The company, agent or private individual can take out insurance without any problem. However, those who ignore this compulsory insurance may face some risks and even be exposed to serious criminal sanctions.