Insurance against damage to works

Verified 15 February 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Do you have construction, extension or renovation work done on the main structure (framework of the building) by a company? Prior to the opening of the construction site, you must subscribe to a construction damage insurance (OD). This insurance prefinances, without seeking liability, the repair work for damage covered by the manufacturers' ten-year guarantee. It then turns on the builders and their insurers. We are taking stock of the regulations.

The damage insurance (OD) reimburses all the repair work of the damage covered by the ten-year guarantee builders.

It guarantees the faults which affect the solidity of the structure and make it uninhabitable or unsuitable for the use for which it is intended (major cracks, roof collapse, etc.).

OD insurance guarantees damage apparent or not when receiving work.

It also covers defects which jeopardize the strength of the inseparable components of the structures viability, foundation, framework, fence and canopy. These are elements whose removal, disassembly or replacement cannot be carried out without damaging the construction, as for example for embedded pipes.

Warning  

The standard clauses provide that the guarantee does not apply damage arising from:

  • Intentional act or dol of the subscriber or insured person
  • Effects of normal wear and tear, lack of maintenance or abnormal use
  • Foreign cause: force majeure, made by a third party or in the absence of developer

Yes, you are required to take out damage insurance if you have construction or rehabilitation work done on a building.

You must take out this insurance whether you are an individual or a company as:

  • Owner of the work
  • Seller
  • Real Estate Developer
  • Agent of the owner of the work

You must take out a non-life insurance (OD) before opening the building site on your behalf or on behalf of the successive owners.

If no insurer wants to insure the construction, the developer may refer the matter to the Central Pricing Office (BCT). The latter will fix the price of the DO guarantee with the insurer chosen by the contracting authority.

Who shall I contact

  • Central Pricing Office

    By telephone

    +33 (0)1 53 21 50 40

    9:00 to 11:45

    By E-mail

    bct@agira.asso.fr

    By mail

    1 Jules Lefebvre Street

    75009 Paris

Warning  

Non-subscription of compulsory insurance is a offense punishable by 6 months' imprisonment and a fine of €75,000 at most or only one of these two sentences. These sanctions do not apply to an individual constructing a dwelling to occupy himself or a member of his family, nor to legal persons public law.

OD insurance starts at the end of the Perfect Completion Guarantee (GPA), or 1 year after the acceptance of works.

However, it can cover repairs of damage that fall under the ten-year guarantee where they have been the subject of reservations on receipt of works.

The developer enters the DO insurer during the year of perfect completion guarantee when it finds that the contractor does not carry out the repairs after having received a formal notice.

The OD warranty period ends 10 years after the receipt of the works, at the same time as the manufacturer's ten-year warranty.

FYI  

OD insurance is limited to 9 years, as it starts 1 year after the receipt of the works.

As soon as you become aware of the claim, you must comply with the deadline set out in your contract. The delay cannot be less than 5 working days.

You send your return to your insurer by letter RAR: titleContent, by electronic RAR dispatch or against receipt.

You can use a template:

Declare the claim to its insurer

In the event of an accident occurring after the sale of the immovable property, it is the purchaser, as beneficiary of the DO insurance, who must initiate the procedure by bringing the matter before the insurer.

Please note

In the event of a disaster, none frankness It's not to be settled.

The insurer must implement the damage guarantee in accordance with various deadlines. They are counted in calendar days.

When a deadline ends on a Saturday, Sunday or a holiday or non-working day, it is extended to 1er working day next.

These deadlines start on the day of receipt of your claim by the insurer.

Folder Instruction

Upon receipt of your claim, the insurer has 10 calendar days to claim the missing information.

Upon receipt of your complete claim, he has 60 calendar days to have the damage assessed, to send you the expert's report and you notify if the insurance covers your claim.

Warning  

For damage estimated to be less than €1,800, expert intervention is not mandatory and the insurer has 15 calendar days to respond.

Claims processed out of time

If the insurer fails to comply with the 60-year time limit calendar days you can start the necessary work to process your return. You must inform them by registered letter or by registered electronic mail with notice of receipt. He can no longer dispute the nature of the disorders declared and he must compensate you.

You can use a template to notify your insurer:

Inform your insurer of repairs made following a claim

The compensation due shall be increased by interest equal to twice the statutory interest rate.

Proposal for compensation

The insurer must submit an offer of compensation to you within a maximum period of 90 calendar days.

The insurer must submit an offer of compensation to you within a maximum period of 90 calendar days.

Warning  

for claims estimated to be less than €1,800, it has 15 calendar days.

Refusal of compensation

Upon receipt of your complete claim, your insurer has 15 calendar days for you notify that he considers that the implementation of the guarantee is unjustified and that he will not compensate you.

You have the choice to accept or reject the offer of compensation.

If you accept the offer of compensation

Compensation must be paid within 15 years calendar days.

If your insurer does not meet this deadline, you can notify that you incur the necessary expenses to repair the damage. The compensation paid by the insurer shall then be increased by interest equal to twice the statutory interest rate.

The allowance will be used only for the actual rehabilitation of the building or land on which it is located. The insurer may ask you to justify the amount of repair work you have done.

Warning  

In the case of exceptional difficulties because of the nature orsize of claim, the insurer may, at the same time notify with his agreement, propose to you the fixing of an additional period for the establishment of his offer of compensation.

This period may not exceed 135 calendar days.

If you feel the offer is insufficient

If you feel that the offer of compensation is insufficient and that repairs cannot wait, you can ask your insurer for an advance pending the resolution of the dispute.

This flat-rate advance, at least equal to 3/4 of the amount of the compensation proposed, is to be applied to the final amount of the compensation to be paid by the insurer.

It shall be paid in a single installment by the insurer within a maximum period of 15 calendar days running from the receipt of your mail.

You can start the necessary work after having informed the insurer by registered letter with notice of receipt, for example by using the following model:

Inform your insurer of repairs made following a claim

You can charge the insurer interest equal to twice the statutory interest rate.

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