Construction insurance: from the first stone to ten years after handover
Developers, contractors, installers and technical professionals. We insure the works while they are under way, the guarantees the law requires of developers and the liability of everyone involved in the building process.
Each stage has its own risk and its own insurance
- Before the homes are handed over. Developers who take advance payments must guarantee their refund to buyers: off-plan deposit guarantees.
- During construction. Damage to the works themselves, to machinery and to third parties: contractors' all risks and liability.
- After handover. Structural damage to the building for ten years: ten-year building insurance, compulsory for housing.
The ten-year guarantee required by the Spanish Building Act
Ten-year building insurance covers, for ten years from acceptance of the works, physical damage to the building caused by defects affecting the foundations, the structure and structural elements, and compromising its strength and stability.
It is compulsory for developers of buildings mainly intended for housing, and without it the declaration of new construction cannot be registered at the Land Registry. The insurance passes to subsequent owners during the guarantee period.
- Technical inspection body. The insurer requires an inspection body (OCT) to supervise design and construction; we coordinate its appointment.
- Additional cover. Beyond the structure, it can be extended to waterproofing and other elements.
- Deductible. The law allows a maximum deductible, which is worth knowing from the outset.
- Self-builders. Those building a single-family home for their own use may be exempt, subject to conditions if they sell within the period.
The works protected while under construction
Contractors' all risks insurance covers physical damage to the works during construction, whatever the cause, except for express exclusions.
Damage to the works
Fire, theft, natural events, workmanship errors or accidents damaging what has been built and the materials on site.
Third-party liability
Damage caused by the works to third parties and adjoining buildings, including that arising from excavation and vibration.
Plant and equipment
Construction plant, site huts and temporary installations.
Additional costs
Debris removal, overtime and express freight to get back on schedule after a claim.
Maintenance period
Damage occurring or discovered after acceptance, during the contractor's guarantee period.
All parties involved
A single policy for developer, main contractor and subcontractors, avoiding disputes over who pays.
Selling off-plan with the guarantees the law requires
Developers who receive money from buyers before handing over the home must guarantee its refund, with interest, if construction does not start, is not completed or is not delivered on time. The guarantee can be a bank guarantee or a surety insurance policy, which does not use up the developer's financing lines.
For developers
We arrange surety insurance for advance payments, with individual certificates for each buyer, through the Group's specialist team.
Developers, contractors and technical professionals remain liable for years
The Spanish Building Act makes the parties involved in construction liable for one, three or ten years depending on the type of defect. We complete the programme with the company's liability cover and the professional liability of architects, engineers and technical staff, and defend their claims with the legal backing of Trebia Abogados.
What clients usually ask us about construction insurance
Is ten-year building insurance compulsory?
Yes, for developers of buildings mainly intended for housing. Without it, the declaration of new construction cannot be registered. Self-builders of a single-family home for their own use may be exempt, subject to conditions if they sell within ten years.
When should it be taken out?
As early as possible, ideally before work starts, because the insurer requires a technical inspection body to supervise design and construction from the outset.
Who takes out contractors' all risks insurance?
Either the developer or the contractor. We recommend a policy that protects all parties involved, to avoid gaps and disputes between them.
Does ten-year insurance cover damp or finishes?
The compulsory cover is for structural damage. Waterproofing and other elements can be added as additional cover.
What happens to the ten-year cover if I sell the building?
The insurance passes to subsequent owners until the ten-year period from acceptance of the works expires.
How much does it cost?
It depends on the type of works, the construction budget, the location, the ground conditions and the covers chosen. We present comparative proposals free of charge.
We will prepare a free review of your development or project
Tell us who you are and what project you are working on. One of our specialists will contact you to learn about the works and present comparative proposals.
- Comparison across more than 40 insurers
- A review of your current policy, if you have one
- A single point of contact who also supports you with claims
Request your review
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