Property and casualty insurance: Underwriting conditions

In the same way as an artisan or builder who is obliged to take out a ten-year guarantee, an individual wishing to carry out construction work is also obliged to take out an insurance policy for damage to works. Many incidents can indeed occur on a construction site. Defects such as cracks in walls, electrical installation problems or floor subsidence may also appear only a few months or even years after delivery of the work. A work damage coverage is therefore used to compensate the owner of the repair work in the event of construction-related damage covered by the ten-year warranty. But what are the conditions for underwriting work damage? To answer this question, it is important to know what a structural damage insurance is. What are the penalties in the event of failure to take out damage insurance? What does this type of insurance cover? How to subscribe to a work damage insurance?

What is a work damage insurance?

According to article L.242-1 of the Insurance Code, any contracting authority, whether an individual wishing to build a house, a builder of a detached house or a real estate developer or seller, must take out property and casualty insurance before the construction site opens. This is an insurance covering all repair work in the event of serious damage related to construction, and this without any search for liability. In other words, it makes it possible to obtain funding for reparations for 9 years after the date of perfect completion without waiting for the court’s decision. The property and casualty insurance therefore serves as a complement to the ten-year corporate liability coverage. A warranty that covers the work for 10 years after the date of acceptance of the work. The same applies to an insurer offering this type of contract. He has the obligation to insure a customer who requests it. In the event of refusal, the customer will then have 15 days to contact the Central Pricing Office, which will set the amount of the contribution by registered letter with acknowledgement of receipt. The bureau will also have the role of requiring the insurer to accept the contract. You can also visit www.assurance-dommage-ouvrage-particulier.com for more information on this subject.

What are the risks in the event of a default?

If this type of insurance is not taken out, the procedure for reimbursement in the event of a defect will be longer. In addition, if the property has been sold within ten years of its completion, the developer will be personally liable to the new owner for the consequences of the lack of insurance. In addition, any contracting authority not covered by construction damage insurance risks a heavy fine and imprisonment of up to six months. The same applies in the event of a false declaration. The insurer may refuse any compensation or consider the insurance contract void if the policyholder has failed to provide accurate information regarding the work. Avoid providing incorrect information when subscribing.

What does construction damage insurance cover?

The construction damage insurance covers in particular the costs related to damage compromising the solidity of the structure and endangering the safety of its inhabitants. It also covers construction defects covered by the 10-year warranty, including possible roof collapses, floor subsidence or major cracks in the walls. Damages involving the liability of builders as well as site abandonment are also included in its coverage. However, it does not cover natural wear and tear, fires, natural disasters or damage caused by the insured or elements that can be separated from dwellings such as doors and windows, heating elements. It is therefore important to subscribe to additional coverages.

The contracting authority’s civil liability effectively covers material and physical damage caused to a third party during the construction operation. The all-risk construction site insurance covers all risks related to the construction site, including fire, water damage, natural disasters and collapses. There are also other additional guarantees to ensure the safety of all construction work. Guarantees of perfect completion, for example, take effect from the date of receipt of the work. They protect the owners from all defects related to the construction of their habitat. As for the

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