In summary

📝 Section	Description
🛡️ Why Subscribe to a Construction Insurance?	Subscribing to construction insurance allows you to protect yourself against unforeseen events, avoid significant financial losses, and provide essential security for all stakeholders.
💸 Protection Against Financial Risks	Construction insurance covers repair costs in case of damage, thus safeguarding against potentially unaffordable expenses.
🏗️ Guarantee of Work Quality	It guarantees that the work will be carried out according to quality standards, reducing the risk of defects and hidden flaws thanks to the contractors’ responsibility commitments.
⚖️ Legal Security	Provides legal protection in case of dispute, covering procedural costs and enabling conflict management without fearing significant financial repercussions.
🧘 Peace of Mind	Brings peace of mind knowing you’re covered in case of problems, allowing you to focus on completing the project without worries.
📜 Legal Compliance	Meeting legal obligations by subscribing to necessary insurances prevents severe sanctions such as fines or imprisonment.
💰 Pre-financing Repairs	Damage insurance provides pre-financing for repairs without waiting for a court decision, which can speed up the repair process.
📈 Increase Property Value	Having insurance in place can increase your property’s value, facilitate transactions, and potentially enhance its worth by reassuring buyers.
🛡️ Protection of Investment	Protects your investment against potential risks, ensuring you won’t lose your money or time in case of a disaster.
📝 How to Subscribe to Construction Insurance?	Explains the need to compare offers, assess project-specific needs, consult an broker, verify certificates, and negotiate conditions for optimal coverage.
⚠️ Risks in Case of No Insurance	Highlights legal risks, reimbursement delays, liability in resale, repair costs at your charge, financing difficulties, and loss of peace of mind without insurance.

The construction insurance is essential to protect your real estate project. It covers various risks related to building construction. Whether you are an individual or a professional, understanding different types of insurance is crucial.

Why Subscribe to a Construction Insurance?

Subscribing to construction insurance allows you to protect yourself against unexpected events. In case of a disaster, this insurance helps you avoid significant financial losses. It is an indispensable security for all stakeholders.

Protection Against Financial Risks

Construction work is often subject to unpredictable risks. In case of damage, construction insurance covers repair costs. Without this insurance, expenses can quickly become unaffordable.

Guarantee of Work Quality

Subscribing to construction insurance ensures that work will be done according to quality standards. Builders and contractors are more vigilant because they know their responsibility is engaged. This reduces the risk of defects and hidden flaws.

Legal Security

Construction insurance offers legal protection in case of disputes. In case of disagreement or claim, the insurance covers procedural costs. This allows you to manage conflicts without fearing major financial repercussions.

Peace of Mind

Knowing you are covered in case of trouble provides peace of mind. You can focus on completing your project without worries. Construction insurance is a safety net that protects you against unexpected events.

Legal Compliance

Subscribing to construction insurance is often a legal obligation. Failing to do so can lead to harsh sanctions. By respecting this regulation, you ensure to stay within legal bounds and avoid fines or imprisonment.

Pre-financing Repairs

The damage-works insurance allows for pre-financing repairs without waiting for a court decision. This means repair work can start immediately, minimizing delays and inconveniences for the owner.

Increase Property Value

Having construction insurance in place enhances your property’s value. In case of sale, buyers will be reassured to know that the property is covered against damage. This can facilitate the transaction and boost your property’s value.

Protection of Investment

Building a property represents a significant investment. Construction insurance protects this investment against potential risks. In case of disaster, you’re sure not to lose your money or time.

Subscribing to construction insurance is therefore an essential step to protect your project. It ensures you a financial, legal, and psychological security, guaranteeing that your construction progresses under the best conditions.

Type of Insurance	Description	Coverage Period	Covered Risks	Mandatory
Perfect Completion Guarantee	Covers defects and anomalies in construction reported at handover or during the year following.	1 year after project completion	Visible defects, defects, non-compliance issues.	Yes
Decennial Insurance	Liability civil responsibility of builders for damages compromising the structural integrity of the work or rendering it unsuitable for its purpose.	10 years after project completion	Damages compromising the structural integrity of the work, inseparable equipment affecting intended use.	Yes
Works Damage Insurance	Pre-finances repair work for damages of a decennial nature without first determining responsibility.	10 years after project completion	Repairs for damages covered by decennial guarantee, including hidden defects.	Yes

Types of Construction Insurance

Works Damage Insurance

The works damage insurance is mandatory for all owners. It covers repair work for damages under the decennial guarantee. This insurance allows for rapid reimbursement without waiting for a court decision.

The works damage insurance applies to all construction work, extensions, or renovations of the main structure (building frame). It covers losses that threaten the structural integrity of the building or make it unsuitable for its purpose, such as roof collapses, major cracks, and ruptures of embedded pipes. The subscription must be made before the start of work and allows for pre-financing of repair work, ensuring quick handling of damages without waiting for a court.

Decennial Civil Liability Insurance

The civil liability decennial insurance is essential for builders. It guarantees repair of issues affecting the structure of the work. The subscription to this insurance is mandatory before starting work.

This insurance covers damages appearing after the handover that compromise the structural integrity of the work or make it unsuitable for its intended use. It protects the builder against claims for ten years following the handover. Building professionals, such as architects, contractors, and artisans, must subscribe to this insurance before starting work to avoid financial and legal risks related to defects.

All Risks Site Insurance

The all risks site insurance covers material damages occurring during works. It is especially useful for companies. This insurance protects against Theft, fire, and natural disasters.

This insurance is designed to protect the project owner, contractors, and project managers against accidental or unexpected damages that may occur on site. It covers materials, equipment, and the structure under construction against risks such as fire, explosions, thefts, vandalism, and natural catastrophes. The subscription must be made before work begins, and coverage ends at the handover.

Project Owner’s Civil Liability (RCMO)

The project owner’s liability covers damages caused to third parties. It is similar to Professional Liability, but applies to clients of the project. The subscription must be made before the start of work.

RCMO protects the project owner against claims for damages caused to third parties during construction. This includes bodily, material, and non-material damages resulting from faults or negligence on site. It applies to individuals, communities, and contractors commissioning the work. This insurance is crucial to avoid costly litigation and ensure adequate legal protection.

Non-Builder Contractors (CNR)

Non-builder contractors must subscribe to decennial insurance. This insurance covers damages affecting the structure of the work. It is mandatory for professionals and recommended for individuals.

The CNR insurance applies to property developers, lot buyers, and sellers who do not carry out the work themselves but assume liability. It guarantees the repair of decennial damages affecting the structure or making it unsuitable for its purpose. Individuals selling a property within ten years of construction are also encouraged to subscribe to this insurance to avoid disputes with buyers.

Completion Financial Guarantee (GFA)

The financial guarantee for completion is necessary for VEFA purchases. It ensures the funding of project completion. This guarantee protects buyers against the risk of unfinished work.

The GFA is required from property developers to ensure that work will be completed even in case of financial failure. It provides security to buyers by guaranteeing that the funds necessary for project completion will be available. This insurance is subscribed before work begins and remains in force until the declaration of completion (DAT). It is especially important for buyers in future state of completion sales (VEFA) who want to secure their investment.

How to Subscribe to Construction Insurance?

To subscribe to construction insurance, you need to compare offers from different companies. Choosing the best coverage at the best price is crucial. An broker can help you find solutions tailored to your needs.

Compare Offers

The first step to subscribing to construction insurance is to compare available offers. It is important to check the guarantees offered, franchises, exclusions, and general conditions of each contract. By comparing multiple quotes, you can identify the best deal based on your budget and specific needs.

Assess Your Needs

Every construction project has specific insurance needs. It is essential to clearly define what you need based on the nature of the work, the size of the project, and potential risks. For example, a large site will likely require a broader coverage than a small renovation project.

Consult an Broker

Consulting a insurance broker can be very useful. Brokers have an in-depth knowledge of the insurance market and can help you negotiate the best conditions. They can also advise you on the types of insurance needed and guide you throughout the subscription process.

Verify Certificates

Before subscribing to insurance, it is important to verify the certificates of insurance of the contractors and builders involved in your project. Make sure these professionals are well covered by decennial liability insurance and that they are up to date on their premiums.

Analyze Exclusions and Franchises

Exclusions and franchises are key elements in an insurance contract. Exclusions specify what is not covered by the policy, while franchises represent the part of damages you will need to pay in case of a claim. Ensure you understand these elements well to avoid unpleasant surprises in case of claim.

Negotiate Conditions

Once you have selected an offer, it can be helpful to negotiate the conditions with the insurer. This can include reducing franchises, extending guarantees, or adjusting premiums based on your specific needs. Do not hesitate to discuss all details to obtain optimal coverage.

Subscribe and Manage the Contract

After choosing and negotiating your insurance, it’s time to subscribe to the contract. Make sure to read and understand all conditions before signing. Once subscribed, it is important to manage the contract and keep all necessary information up to date. Notify your insurer of any changes in your project that may affect the coverage.

Maintain Good Communication

Maintaining good communication with your insurer is essential. In case of claim, a rapid and precise declaration can accelerate the compensation process. Always keep copies of all documents related to your insurance and ensure your contact details are current.

Risks in Case of No Insurance

Not subscribing to insurance can lead to heavy sanctions. You might face very long reimbursement delays. In case of resale, you are responsible for damages during ten years.

Legal Sanctions

The absence of construction insurance exposes owners and contractors to severe legal sanctions. Indeed, not subscribing to damage-works or decennial liability insurance can entail substantial fines and even imprisonment. These sanctions are designed to ensure protection for buyers and third parties.

Delays in Indemnifications

Without insurance, indemnification in case of disaster can take a long time. Legal procedures to establish liability are often lengthy and complex. During this time, necessary repairs cannot be performed, which can worsen damages and increase final costs.

Liability in Case of Resale

If you sell your property without having subscribed to insurance, you remain responsible for damages for ten years after the handover. This means any problem occurring during this period will be under your financial and legal responsibility. New owners could pursue you for damages not covered by insurance, leading to potentially huge costs.

Repair Costs at Your Expense

In case of disaster without insurance, all repair costs will be at your charge. Repair works can be extremely expensive, especially for major damages such as structural cracks or waterproofing issues. Without insurance, these costs can quickly become prohibitive.

Funding Difficulties

Banks and financial institutions often require proof of insurance to grant loans for construction. Without insurance, it may be difficult to obtain financing, delaying your project or increasing borrowing costs.

Impact on Resale Value

A property without insurance may be less attractive to buyers. The presence of adequate insurance is often a sign of security and reliability for buyers. Without it, your property’s resale value could be significantly reduced.

Loss of Peace of Mind

Not having insurance exposes you to ongoing worries about risks. Knowing you will have to bear all costs in case of problems can be a major source of stress. Insurance offers peace of mind, knowing you are protected against unforeseen events.

Conclusion

Construction insurance is an indispensable protection for all actors in the building industry. It covers the financial and legal risks associated with work. Make sure to choose the right insurances to guarantee the security of your project​.

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