Ten-year insurance is a direct damage insurance for new construction, which facilitates quick compensation regardless of who is responsible for the damage. New construction or rehabilitation works applying for a building permit for housing, they must take out this insurance covering compensation for material damage caused to the building by defects or defects in the structure which may endanger the stability of the building.
The Building Development Act (LOE) regulates construction processes, with the rights and obligations of developers, builders and buyers of dwellings. The Ten-Year Insurance is included in the Law as a compulsory contract for housing to be marketed, with the intention of protecting the final consumer. You have an obligation to take out Decenal insurance, the developer or the builder to protect the person who buys that home. Thus, the insured will be the owner of that dwelling.
The insurance takes effect at the time the work is completed and covers the following 10 years. The Ten-year warranty covers material damage caused by defects or defects affecting the foundation, support, beams, slabs, load walls or other structural elements affecting the mechanical strength and stability of the building.
One of the requirements that the LOE incorporates is that to be able to register a new work in the Property Registry, it is mandatory that the validity of the ten-year policy is proven, by presenting it and its final receipt issued at the end of the work. Ten-year insurance therefore provides a guarantee for the security of the owner who buys the property in question.
*Basic coverage may vary depending on the insurance company.