What does building insurance cover?
Building insurance is, by law, obligatory. Article 20 of the Edification Act. stipulates that no public deed of new works will be authorised or registered in the Land Registry unless the developer and the contractor in one case, have taken out three insurance policies.
These insurance polices cover the following:
| Who takes it out? | What does it cover? | How long does it last? | |
Insurance 1 |
Building Contractor |
Minor defects affecting finishing or final details (e.g. doors, locks, windows, etc.) |
1 year |
Insurance 2 |
Developer |
Damages to construction and conditions of inhabitance(e.g. water leakage, pipes, drainage,etc.) |
3 years |
Insurance 3 |
Developer |
Structural building matters. Serious damage to beams, pillars any other element directly affecting the mechanical resistance and stability of the building. |
10 years |
The policy beneficiaries will be the developer and any subsequent purchaser of the property.
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