Construction Insurance in spain
C1 BROKER ® offers you solutions for Decennial Damage Insurance for your Home
If you plan to buy a new construction from a real estate developer , that is, from a construction company, this company must give you a 10-year guarantee on the structure of the building.
This means that anyone (natural or legal person) who builds a home / building for the purpose of selling it must offer this guarantee to future buyers.
To cover the 10-year infrastructure guarantee, Spanish Law requires the contracting of a specific insurance: the Decennial Insurance.
What does the Decennial Insurance Cover?
The Decennial Insurance guarantees for 10 years the damages caused by defects that compromise the mechanical resistance and stability of the building, structures, floors, foundations or beams, the floors; for three years defects in facilities or construction elements that fail to meet habitability requirements and for a year, defects that have occurred in the finishes of the work.
This insurance protects not only buyers (who are calm because they know that in case of structural defects that compromise the habitability of the home, they will be able to claim it and their claim will be backed by the financial strength of an Insurance Company) but also to real estate developers because in case of receiving such a claim it is the Insurance Company that will be in charge of handling the complaints and compensating the buyers.
When is the Decennial Insurance contracted?
The contracting of the Decennial Insurance, also known as Structural Guarantee, is usually done at the beginning of the construction project . The different phases of the building are accompanied by official experts who are in charge of verifying that the structures are being carried out safely . The experts regularly inform the insurance company if the construction complies with current regulations.
Therefore, the Decennial Insurance is a very important guarantee for the buyer, since he can be sure that the building or house he acquired or is about to acquire was built according to the correct standards.
For the buyer, it is essential to know that your newly acquired house has Ten-Year Insurance, since it is the guarantee that you can claim the damages and defects that the house may have and that appear during the first 10 years. (Precisely the origin of the name Decenal comes from the 10-year warranty).
The Ten-Year Damage Insurance guarantees the responsibilities of all the agents involved in the building -builders, developers and architects, among others- for defects that affect the stability of the building.
The obligation of this insurance is legislated in the Second Additional Provision of Law 38/1999, of November 5, on Building Planning.
Another question is:
And what happens if I have not taken out a Decennial Insurance at the beginning of the construction? Can I hire the Decennial once the work is finished or in its final phase?
There are people who due to ignorance or oblivion have not taken out the decennial insurance for the construction of their house or building. This is a problem, because a property without its Decennial Insurance cannot be sold, nor will it be registered in the Property Registry.
Clients who do not take out this insurance at the beginning of construction then have many difficulties in finding an Insurance Company that wants to accept and cover this risk.
Get in touch with your Insurance Broker – C1 Broker®, to manage your Decennial Insurance on time,
In the case that you are building your house as a private person (private owner), this insurance is voluntary. The Spanish legislator assumes that a builder who builds his own private house has the greatest interest in doing it correctly, with the greatest care and respecting the regulations.
However, if you ever decide to sell your home, you must inform the buyer that you have not taken out any Ten-Year Insurance / Structural Warranty. The buyer must expressly sign that he was aware of this risk in the purchase agreement.
Another option would be, referring to Article 20 Law 38/1999:
“In the event of the transmission” inter vivos “within the established period (…) the self-promoter, unless otherwise agreed, will be obliged to contract the guarantee referred to in the previous section for the time remaining for complete ten years ”.
Talk to us, at C1 Broker®, Insurance Brokers we offer Decennial insurance through several insurance companies. We try to find a solution for all problems.
What guarantees do Ten-Year Insurance include?
In C1 Broker®, Insurance Brokerage we will recommend which is the Decenal Damage product that best suits your building project and available budget.
There are several policies on the market, with different levels of coverage and benefits. These are the most common:
Structural Damage Warranty (Basic or Extended)
Waterproofing of facades and roofs for three years
Reforms – Protection of pre-existing assets, in case of reform
Contact us now To request more information and the budget for your Decennial Insurance, we work with the best companies in the market and we study dozens of policies to only offer you what really suits you.