In order to cover all damage that might render a building uninhabitable, it is essential to take out ten-year civil liability insurance. Indeed, if you work in the construction sector, you need to know whether you are covered by this guarantee obligation.
What is ten-year civil liability insurance?
Ten-year civil liability insurance, commonly known as the ten-year guarantee, is a promise to repair damage related to construction defects that may occur within ten years of the end of a construction project, i.e. from the time the work begins. With this type of insurance, the client will receive compensation for each damage found without the need to wait for any court decision. In other words, the professional having built the structure is liable for ten years. If the work is sold, this obligation is also passed on to the successive purchasers to enable them to act in the event of a claim. Note that the ten-year civil liability insurance must be attached to the sales contract.
Who is required to take out ten-year civil liability insurance?
The Spinetta law, introduced in 1978 by the French government, defined professional insurance and the ten-year insurance obligation. Indeed, the taking out insurance covering the ten-year civil liability has become compulsory for all professionals, companies or craftsmen carrying out activities in the construction industry. Thus, it involves architects’ offices, design offices, property developers as well as those responsible for structural work, including carpenters, plumbers, tilers, electricians and heating engineers. However, subcontractors who carry out a contract are not subject to this obligation. On the other hand, foreign builders are concerned by the obligation to take out ten-year civil liability insurance. This guarantee is intended to cover damage related to the various works carried out in the construction of a house or building and covers the renovation of existing constructions as well as completely new works. Note that it even covers the case of a groundà collapse or a landslide.
Why you should take out ten-year civil liability insurance
Ten-year civil liability insurance covers all work carried out on the building by you and/or your employees. Thanks to this type of guarantee, construction defects that may affect the use or solidity of the house or building will be refunded. It also enables the professional responsible for the construction work to cover their ten-year liability, particularly in the event of poor execution that would endanger the health of the occupants or a shortfall in the waterproofing or solidity of the building. When signing a contract for the hire of work, a professional must provide the recipient of with the compulsory ten-year insurance certificate, which also defines the activity covered.