|
In this page, we will NOT provide information on household insurance as this is explained
in the house page on the site. What we will try and provide is some basic information as to
what one needs to cover when having a house built, or when coverage on a condominium is required.
A. Construction insurance :
French legislation is quite specific when it comes to covering a construction program whether
be it for a house or a building.
Ten year liability, known as Décennale: All persons or firms involved in the construction in
any way should carry their own ten year liability in the event that their responsibility could be
engaged in any work carried out. Any person or firm one decides to use should be able to provide
proof of insurance at any time. The period of validity of the insurance must be for the entire
duration of the construction.
All risks for building site, known as Tous risques chantiers: will cover the site and materials on the site during the construction of the building.
Strutural damage, known as Dommages d'ouvrage: whilst the "décennale" covers liabilities, this insurance will cover direct damages, even including subsidence in some cases, without needing to determine the responsibility of one of the parties involved in the construction of the building. In simpler words, it can be compared to "comprehensive" cover in motor insurance, whereby damages are paid and then Insurers will take action against the responsible party to obtain reimbursement of the indemnity.
This may take years, hence the purpose of taking out out such Franchise.
Dommages aux existants (compare with automobile insurance)
|
|
Questions:
|
|
1. Who needs to carry ten year liability (décennale) ?
Any person/firm involved in the act of construction, plumber, builder, architect, the supervisor of the site (maître d'oeuvre), and the person who is having the house built (maitre d'ouvrage) if he is involved in any way in the design, concept or other.
2. Do I need to take out a ten year damage policy (dommages d'ouvrage) if all participants carry ten year liability (décennale)?
Yes, by law you are required to. If the property is sold within ten years of its completion, the Notaire will require proof of insurance as cover will be passed on to the buyers. If you do not carry this insurance, you could be fined and even risk emprisonment.
|
|
3. How is the premium calculated?
It is usually a percentage of the total construction cost, with a minimum premium level charged. A deposit is paid when the policy is taken out and when the construction is finished, the appropriate premium is calculated, the deposit deducted and the balance charged. The premium is paid once but cover lasts ten years.
4. When does coverage start on the "dommages d'ouvrage" ?
The policy must be taken out before the construction is finished but it will only take effect when the ownership is actually passed on, known as "réception".
|
B. Condominiums :
A policy covering the structure and the liabilities of the co-owners is to be taken out on behalf of the co-owners. This is usually arranged by the manager of the building known as the "Syndic". This policy will NOT cover the contents of each occupant, whether co-owner or tenant, nor their liabilities. In some cases, managers may only cover some specified perils such as fire only to save on the premiums charged, which means that it is then up to each co-owner to cover other perils. This policy may also
exclude betterments (decoration such as marble on walls, floors, etc). It is highly recommend for co-owners to take out insurance, even if they do not live in the premises concerned, to cover standard perils should there be some lack of coverage in the condominium policy.
Top
|
|
