The Structural Damage Insurance

It is mandatory to issue a structural damage insurance policy, and this is the responsibility of the building contractor.

Before the start of work at your project site, the building contractor is obliged, in accordance with article L242-1 of the insurance code, to that an insurance policy is issued guaranteeing, over and above all question of responsibility, payment for work carried out to repair any damage that would have rendered the house unsuitable for its intended purpose. Further, this insurance also relates to the other project guarantees (the two-year guarantee for smooth operation and the ten-year project guarantee). This cover, commonly known as “structural damage insurance”, is obligatory for any resale within the ten-year project guarantee period: It will be required by the notary.

Finally, in the event of resale before the 11th year, the seller of the property will be obliged either to try to arrange structural damage insurance to cover the balance of the project years (often at a prohibitive price), or payment of compensation to the buyer for defaulting on the guarantee.

If the property carries the mark of “NF Maison Individuelle” certification, the builder is obliged to ensure that structural damage insurance is issued before the start of project work.

If there is no such insurance cover, then the building contractor assumes direct civil responsibility for the building. He becomes, in a way, the personal insurer of the work. In the event of a disaster, the owner must try to assume the ten-year responsibilities of the stakeholders unless the latter are in possession of a ten-year guarantee. The appeal process can then drag on for years.

Guarantee of delivery at the agreed price and time

This guarantee is provided by the builder, and is effective from the date when work starts at the project site. It covers the project manager against the risks of non-execution or poor execution of the required work as defined in the contract. It provides you with a guarantee that the construction will be completed under the contractually defined conditions.

Closure of the delivery guarantee

  • Upon unreserved acceptance, when you are assisted by a professional
  • 8 days after acceptance, when your are processing the acceptance without the assistance of a professional
  • Upon lifting any constraints imposed at the time of project acceptance, or within the 8-day period after it. If the builder undertakes the construction work without having obtained the delivery guarantee, je may be liable for penal sanctions

 

Guarantee of reimbursement when account payment is made

If an account is turned over to the builder at the time of contract signature, he is obliged to provide a reimbursement guarantee.

This guarantees the reimbursement to the project manager of all payments made up until the start of work at the project site. It comes into play, when the building contract does not take effect, for example, if the purchaser exercises his right to withdraw or if work is not started at the site on the agreed date.

Guarantee of perfect completion

This guarantee has a twelve-month validity period, effective from the date of acceptance. It covers all faults or imperfections indicated in the project acceptance sign-off report or arising during the year following acceptance.

10-year guarantee

For a period of ten years, this guarantee insures the project manager against any faults or imperfections that may be found to compromise the strength of the building work or to render it unsuitable for its intended purpose.

2-year guarantee

This guarantees, for a period of two years, the smooth operation of all equipment components that can be removed or replaced without negative impact upon the work.

Detailed notification

The building contract must mention the composition and technical features of the proposed building, including all floor-level modifications, various network reports, and details of all the internal and external essential installation work for domestic use. These obligations are contained in a basic document: the detailed notification.

This document clearly indicates what is included in the project price, and what is not.

Regulatory Site Opening Declaration

The project manager, who is the recipient of the construction permit, must make a declaration at the town hall confirming that work has indeed started.

This mandatory declaration, in standard format enables verification that the construction project has begun well before the expiry of the construction permit.

Declaration of Completion of Work and certificate of conformity

Within thirty days of the completion of construction work at the site, the project manager must draw up a declaration attesting to this achievement, and address it to the town hall.

The NF-approved builder will take charge of this requirement.

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