Decennial insurance, or ten-year liability coverage, is a legal requirement for construction professionals in France. It safeguards homeowners against major defects in new builds post-completion. But what happens if the builder you hire doesn't carry this essential policy?
Without decennial insurance, your protections as a homeowner are severely limited. As outlined by experts at La Décennale, a leading resource on this topic, the standard process involves notifying the builder or their insurer of defects qualifying under the ten-year guarantee. They cover repairs. However, absent insurance, the builder must foot the bill personally—if they can.
This exposes you to significant issues: the builder may lack funds for repairs, abandon the site after receiving advances (leaving you unable to recover deposits via insurance claims), or complicate property sales. Notaries must disclose the missing insurance in the sales deed via a specific clause, potentially deterring buyers and reducing your home's market value.
French law, under Article 1792 of the Civil Code, mandates decennial insurance for professionals. Non-compliance triggers harsh penalties: up to 6 months in prison and a €75,000 fine, even without a claim. Builders must personally remedy defects or compensate for damages, including repair costs. Courts may also excuse final payments if defects arise before project completion and acceptance.
Note that exemptions exist for certain projects, like open-air sports facilities, but most residential builds require coverage.
