NHBC?????

Hi

Can anyone enlighten me as to what is exactly covered by the NHBC certificate on Spanish properties??

Are we just looking at structural defects or other things such as showers, boilers etc??

Thanks in advance.

Purely structural cover and even this can be limited

Included with your deeds there shold be an actual copy of the insurance document

Hi,

the law says that the guarantee covers the MATERIAL damages CAUSED IN THE BUILDING because of DEFECTS or patologies which AFFECT the fundaments and the STRUCTURAL ELEMENTS, AS LONG AS the BUILDING'S ESTABILITY and mechanic resistence are endangered. This means:

1.- The insurance does not grant compensation on grounds of loss of profit or any other concept different to the material damage.

2.- The material damage which is compensated is JUST THE ONE CAUSED IN THE BUILDING. If there is furniture, etc... this would not be covered.

3.- The damage HAS TO BE CAUSED by a DEFECT. Lack of installation of the water heater might be a breach of contract, but it is not a defect and therefore it is not covered under the insurance.

4.- The defect must affect structural elements. This excludes damps and bad workmanship in general.

5.- And finally,the building's stability has to be endangered. In other words, either it is going to fall down, or in the medium term it will fall down. If not, then it is not covered.

These defects must appear within 10 years after the building is finished.

Practical examples:

1.- A purchases a two storey house and after one year ALL the rooms have small cracks. In some times, the cracks go from one corner of the window to the corner of the room, and so on. In other cases the cracks go round all the walls of the rooms, making a circle. An architect visits the place and says that the problem is in the fundaments, as it seems the soil is moving and this makes the whole building move as well. However, the architect also says that the buildings "tend not to fall." 

Solution: as the stability of the building is not endangered - please see point 5 above - the insurance company refuses compensation. To claim those damages, go to court and clail liability either on grounds of the contract or other ones. 

2.- The building falls down and all the furniture inside is destroyed, along with a neighbour who came to visit and got killed. Your wife gets depressed and the doctor charges 1.200 € for the treatment.

- The insurance company grants compensation for the building value to certain extent, but even though the furniture is a material damage, it is not covered because it is not "in the building" itself. To claim those damages, go to court and clail liability either on grounds of the contract or other ones.

- The neighbour killed: it is not a "material damage". His heirs and wife might claim at court as well on grounds of moral damage.

-  The doctor charges are considered "moral damage" and not material.

3.- In the plans there was a gutter for the rain water and the developer has not installed it:

the insurance does not cover this because it is not a defect, it is a lack of compliance with the contrac terms; in addition ,there is no material damage, and it does not affect the estability at all. It is possible to go to court and chase the developer to have this obligation fulfilled.

I hope the above clarifies the issue further.

For further questions, please check our website fairway lawyers.

and maybe more FYI:

The article in the General Building Act which specifies the legal action for different sorts of building defects is:

Article 17: Civil liability of the agents that intervene in the building process.

1. Despite their contractual liabilities, the individuals or companies that intervene in the building process will answer to owners and third purchasers for the entire building or for part of them, in case they have been divided, of the following material damages happened in the building within the established deadlines, counted from the reception date without reservation or from the rectifying moment:

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 ressistance 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 of the provision 3,1,c.

The builder will also answer for the material damages by vices or execution defects that affect the elements of finishing of the works within a year deadline.

The habitability requirements set by this Act in artilce 3.1.c are as follow:

Article 3. Basic requirements of building.

In order to guarantee the safety of people, the welfare of society and the protection of the enviroment, buildings must be designed, built, maintained and conserved in such a way that will fulfill these basic following requirements:

The article lists a series of requirments under three different categories. We will cover those regarding habitability, as mentioned in article 17, but I can answer your questions if you want to know more on the other ones:

(a: regarding functionality)

(b: regarding safety)

(c: regarding habitability)

c.1) Higiene, health and protection of enviroment so that acceptable conditions of healthiness and comfort in the internal environment of the building and so that this won´t damage the close enviroment, guaranteeing a proper management of all kind of refuse.

c.2) Protection against noise, so that the perceived noise won´t put people´s helath at risk and will enable them to carry on their activities properly.

c.3) Saving of energy and thermal insulation, so that a rational use is made of the necessary energy for the adequate use of the building.

c.4) Any other functional aspects of the building elements or the installations that will enable a satisfying use of the building.