Construction
Construction site insurance
During the construction phase
Contractors' all risks
Purpose of the cover : to cover material damage to the structure during construction (collapse, fire, storm, etc.) without prior investigation of liability.
Owner's Liability
Purpose of the cover : to cover the financial consequences of the liability that may be incurred by the project owner due to bodily injury, property damage and consequential damage to third parties.
Upon acceptance of the work
Construction Damage
Construction damage insurance is a legal insurance obligation (L.242-1 of the French Insurance Code) for the project owners:
- The owner of the structure
- The owner's representative: delegated project owner, co-ownership syndicate or property manager for work on common areas, etc.
- The property developer
Purpose of the policy : Pre-financing insurance to pay for damage that makes the building unfit for purpose or affects its structural integrity
Supervised process to ensure regulated takeover deadlines
Remember to ask for the decennial insurance certificates of the contractors beforehand and check that the activities insured are in line with the consignment they relate to.
Developer-builder
Purpose of the policy : developer-builder is a liability insurance that covers the project owner for ten years from the date of acceptance. Indeed, even if they are not the builder, the project owner or developer is required to take out decennial insurance.
NB: Construction Damage and developer-builder insurance policies are systematically requested by notaries in the event of the sale of the property within ten years of acceptance. Failure to take out such insurance will have an impact on the sale price of the property, up to a 20% reduction, or will make the sale impossible until the ten years have expired.
Decennial liability insurance
If you are involved in a construction or renovation project, whether you provide manual or intellectual services, you will be subject to a specific liability framework.
During the construction periodyou are liable for any damage that occurs, regardless of the cause: theft, damage to materials, or destruction of the structure by fire of unknown cause... Damage during construction can be covered by insurance.
After acceptance of the workas a construction professional, you are liable to the owner or purchaser of the structure in the event of defects in the construction work. You are therefore bound by three types of legal obligations, which are limited in time :
- Defects liability warranty - not insurable : for one year after acceptance, you must repair all defects reported by the client at the time of the acceptance report or afterwards
- Good working order warranty - insurable for two years, you are obliged to repair defects that impede the proper functioning of equipment that can be removed from the building with it remaining intact (electric radiators, air conditioning, hot water tank, shutters, etc.).
- Decennial liability - compulsory construction insurance :
As a builder, you must take out decennial liability insurance at the start of any construction project (Article L. 241-1 of the French Insurance Code), whether it is new or restoration work. This insurance must appear on estimates and invoices (as well as the details of the insurer and warrantor, and the geographical scope of the policy or warranty).
Failure to comply with this obligation is punishable by six months' imprisonment and/or a fine of €75,000.
Your liability : for ten years after acceptance, you are liable to the client for any damage that:
- compromises the integrity of the structure (risk of collapse, etc.)
- renders the structure unfit for purpose (major cracks, leaks, etc.)
It is important to note that the decennial liability framework exempts the client from having to prove that it was the builder who was at fault.