During construction or renovation projects, insurance obligations extend beyond contractors to building owners. Regulations mandate that owners secure property damage insurance—known as assurance dommages-ouvrage in France—to cover potential claims on new or renovated properties.
Construction and renovation works are tightly regulated, including mandatory insurance. Builders must provide a 10-year guarantee, while project owners or sponsors need property damage insurance. This ties into the 10-year guarantee under France's Spinetta Law of January 1978, a cornerstone of construction insurance.
This policy reimburses owners for solidity defects or damage affecting habitability without awaiting court rulings. If a building's structure is compromised, becomes uninhabitable, or unfit for purpose, compensation is swift—enabling urgent safeguards like tarping a leaking roof to prevent further harm.
For in-depth insights from construction law specialists, explore dedicated resources on property damage insurance.
France sees around 250,000 construction claims annually, with average repair costs ranging from €22,000 to €150,000. This underscores the critical need for insurance, shielding owners from bearing these hefty expenses themselves.
A standout feature is its 10-year validity. Even upon resale, coverage transfers to new owners, boosting property value and easing transactions.
To activate this protection, secure the policy before site work begins. It takes effect post-completion and after the perfect completion guarantee expires.
Per Article 242-1 of the French Insurance Code, project owners (maîtres d'ouvrage) cannot waive this coverage. No penalties apply if self-building without it, but compliance is essential for most.
Required for real estate developers, individual home builders, property syndicates, and individuals contracting directly with builders.
