According to the LOE (General Building Act) the ten years insurance plan for building companies guarantees for ten years all damages caused by faults or defects in construction which directly affect the resistance of the building.
The developer is the policyholder and is obliged by law to sign a ten years insurance plan. The developer is also the assured party, and following the sale of the home, buyers become the beneficiaries of the insurance.
Individuals and companies involved in the construction process are accountable to the owners of the material damage caused to the building, provided they claim in time. Time limits for filing a claim vary depending on the importance of the fault.
a) For 10 years, of material damages caused in the building due to defects or vices that affect the foundations, supports, beams, floor structure, charging wall or another structural elements, that directly compromise the mechanic resistance and the stability of the building.
b) For 3 years, of material damages caused in the building by defects or vices of the building elements or the installations that produce the breach of the habitability requirements.
c) For 1 year, of the material damages by vices or execution defects that affect the elements of finishing of the works .
The deficiencies that may appear within these timeframes need to be fixed by the appropriate operators at no cost to the user.
It is very important to have written record of how the damage had occurred within the time set. Most advisable to do it through certified letter or burofax so that the sender can have acknowledgment of reception and date of reception of writing by the addressee.
Liability is individual for every different building agent (developer, builder, architect…), however, when it is not possible to tell who was the responsible, accountability is asked in a jointly way.
The period of limitation of actions to ask for these liabilities is of two years from the time such damages occur.
Damages covered:
• Material damages that endanger the stability of the building (foundations, floor supports, beams, design errors).
• Material damages to secondary works, installations and equipment of the building (resulting from a major damage in the main building).
• Costs of repairs to eliminate the threat of subsidence.
• Cost of demolition and removal of debris (as a result of damages covered by the policy).
Optional Coverage:
• Secondary work
• Waterproofing of decks.
• Waterproofing of facades.
• Waterproofing and sealing of basements.
• Waiver of appeal against the builder.
• Waiver of appeal against the contractor and / or subcontractor.
• Waiver of appeal against the technical direction.
• Damage to pre-existing goods.
• Revaluation of insured sum and franchises.
Not covered damages:
• Body injuries or economic damage other than those protected by the General Building Act.
• Damages caused to properties contiguous or adjacent to the building.
• Damages caused to movables goods which are located within the building.
• Damages produced by works performed after the receipt of the building, except those made to fix construction defects
• Damages caused by misuse or lack of proper maintenance of the building.
• Those that have their origin in a fire or explosion, except those caused by defects in the facilities themselves.
Arcos de la Frontera ( Cadiz) by Wild Guru Larry at Flickr.com