In order to cover all damage that might render a building uninhabitable, it is essential to take out ten-year civil liability insurance or a ten-year guarantee. If you work in the construction sector, you first need to know whether you are eligible for the ten-year liability insurance 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 insurance, the client will receive compensation for each damage found without the need to wait for any court decision. The company having done the work is liable for ten years. If the building is sold, this obligation is also passed on to the successive purchasers, to enable them to act in the event of a claim. The ten-year civil liability insurance must always be attached to the sales contract.
Who is compelled to take out ten-year civil liability insurance?
The Spinetta law, introduced in 1978 by the French government, defined the extent of professional insurance and the ten-year insurance formula. Indeed, taking out insurance covering the decennial civil liability becomes compulsory for all professionals, companies or craftsmen carrying out activities in the construction industry. It therefore involves architects’ offices, design offices, property developers as well as those responsible for structural work, including carpenters, plumbers, tilers, electricians and heating engineers. Subcontractors who carry out a contract are not subject to this obligation. On the other hand, foreign builders are affected by the duty to take out ten-year civil liability insurance. The latter is intended to cover damage related to the various works carried out in the construction of a house or building and covers the modification of existing constructions as well as new works. It even covers the rare case of a ground collapse or a landslide.
Why take out ten-year civil liability insurance?
Ten-year civil liability insurance is very important because it covers all work carried out on the building by you or your employees. Thanks to the ten-year guarantee, construction flaws that may affect the use or strength of the house or building will be reimbursed. This guarantee also enables the professional to cover his ten-year liability, particularly in the event of poor execution of a work that would endanger the health of the occupants, the waterproofing and the solidity of the building. When signing a contract for the lease of work, the professional must provide the recipient with the compulsory ten-year insurance certificate, which also happens to define the activity covered.