Editorial – Responsible for the sale of a property, the property developer must take out damage insurance for the work. This is a guarantee intended to cover claims that may compromise the built structure. Valid for 10 years, it is passed on to successive owners. But before the sale of a built property, the promoter is thus required to take out damage insurance.
The importance of book damage insurance in real estate sales
Structural damage insurance is required by two major real estate players with whom the promoter works regularly. First, the bank requires it before granting a loan. Then, the notary must annex it to the contract of transfer of the property. Thus, the property developer damage insurance is essential for any real estate sale.
Namely that this transferable insurance covers the property and not the person making the subscription, in particular the real estate developer. In any case, the absence of this guarantee presents a great risk for the promoter because, in addition to complicating the transfer, it risks considerably lowering the price. In addition, he will be held responsible in the event of construction defects and poor workmanship.
Why the promoter must take out damage insurance
Having the quality of a client, the promoter collaborates with qualified stakeholders such as an aluminum carpentry company since he makes the decisions on the construction work to be carried out. His objective is then to build a good built for him that will sell easily. In addition to the aluminum carpentry company, it also calls on many other professionals, including a project manager, a surveyor, an architect, a design office, etc.
All stakeholders must benefit from a ten-year guarantee. On the other hand, the decisions related to the construction and construction of the property rest with the real estate developer. Consequently, he must assume the risks by subscribing to structural damage insurance. This is above all a legal obligation, but it also enhances the work of the promoter at the same time.
How does the structural damage insurance work?
The warranty takes effect before the opening of the construction site, because some work may already cause poor workmanship and construction defects. During the 10 years following construction, the structural damage insurance covers damage to the structure even if it changes owners several times.
The contract ensures rapid support for repair and overhaul interventions, as it is not necessary to appoint a person in charge. The insurance company is required to make the reimbursement without looking for which party is responsible for the damage to be covered. Insurance works even if the damage results from the instability of the ground.
You just have to know that the work damage insurance only intervenes after the expiration of the one-year warranty which corresponds to the perfect completion of the work. The insurer can still make an exception in the event of an unsuccessful formal notice. In short, book damage insurance allows the developer to sell better and the future owner or tenant to enjoy real estate in perfect condition.
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