Published on : 04 May 20204 min reading time
Becoming homeowners one day and having your own house built has always been everyone’s dream. In fact, it’s probably one of the biggest dreams of any sane person. Indeed, there are many advantages to owning and living in your own home, not to mention the savings in terms of rental costs. However, building your own home is not without risk. Claims can occur on the building site. Fortunately, there is insurance specifically designed for this type of situation. The law does require anyone who has a house built or construction work done by a company to take out property damage insurance. But what is property damage insurance? How does building owner’s insurance work? What damage is covered by the building owner’s insurance? How to declare a claim in a building damage insurance ? What is the procedure in case of a claim ?
What is a damage insurance ?
It is important to take out damage insurance before starting any work on the building site. Damage to works insurance or project management insurance allows the insured to be compensated by his insurer for the amount of the work without having to wait for the responsibilities of each company to be engaged in the event of a construction defect, i.e. in the case of faulty workmanship. This can be damage affecting part of the building’s framework or compromising its stability. The insurance effectively reimburses the repair work covered by the ten-year guarantee taken out by the construction company without waiting for the decision of a judge. However, three conditions must be strictly met for the building owner’s insurance guarantee to come into play. Firstly, the work must have been accepted. There must also be a one-year period of perfect completion and the disorder must be covered by a guarantee.
What damage is covered by the project owner’s insurance?
The guarantees covered by the project owner’s insurance are the same as those covered by the ten-year guarantee. The ten-year builder’s insurance therefore covers damage that could endanger the life of its occupants or make the building uninhabitable by not respecting the normal conditions of habitability, damage affecting the stability of the building whether it is the framework, the foundations or the framework as well as damage affecting the elements inseparable from the building. The abandonment of the building site could also be covered by the work damage insurance. Premiums for damage to works can be calculated according to the total amount of the construction or the loss ratio. The calculation can also be made according to the purpose of use of the building, whether commercial, agricultural or family use, or the type of work, whether it is an extension, repair or rehabilitation or new construction.
How do I report a claim in damage insurance?
The project owner has the obligation to report the claim and the damage caused by the claim to his insurer as soon as possible. However, the report is only made once the insurer has in his possession all the elements necessary for the study of the claim and its compensation. The insurer will not be able to start the settlement procedure until all the elements have been received. All the elements of the declaration accompanied by a declaration letter sent by registered mail with acknowledgement of receipt from the insurer, mentioning the number of the master builder’s insurance policy and the name of the owner of the building, the date on which the damage appeared with a precise description of the damage noted as well as the date of first occupation of the premises or the date of receipt of the property, must be made within a minimum legal period of 5 days from the discovery of the damage.
How does the expertise in work damage work?
In the event of an incomplete file, the insured will have 10 days from receipt of the claim declaration to claim additional elements, 15 days to inform the insured that he refuses compensation or accepts or if the amount of compensation is less than 1,830 euros. 1,830 or that the cover cannot be used in his favour, he will be obliged to appoint a construction expert to carry out the expertise. He will have a period of 60 days to appoint an expert. The expert’s role will be to establish the losses covered by the work damage insurance, to quantify the damage and to determine the types of repairs to be made.