Building damage insurance: what does it cost?

Regardless of whether you are going to build your house or start renovating an apartment, you must take out property damage insurance to cover any damage. Here’s what you need to know about the price.

How much does property damage insurance cost?

Have you decided to build a house or renovate your apartment? It is a decision and often an important investment that requires a lot of work and organization. Before work begins, remember that you are required to insure against damage caused by construction or renovation. This insurance, called building damage insurance (DO), covers damage to the building during its construction or renovation, as well as damage caused to people during construction or renovation (injuries, accidents, etc.).

Is it necessary to take out property damage insurance for all types of work? How much does this warranty cost and who should I contact to find the best price?

Is building damage insurance compulsory?

DO insurance is mandatory for all persons building a house or renovating their home, regardless of the amount of work. It must be taken out before the start of the work and remains valid for 10 years after the end of the work (Art. L242-2 of the Insurance Act).

Why take out property damage insurance?

Building a house or renovating an apartment is a big investment. The dangers associated with the work can be many and endanger your project: delays, disruptions observed after delivery, disasters (flood, fire, etc.).

Taking out building damage insurance gives you the opportunity to do so protect you if problems arise during work and which would entail additional costs (repair of observed disorders, compensation to victims, etc.).

What does structural damage insurance cover?

DO insurance covers damage caused by a construction defect for 10 years after the work has ceased. It supports:

– the repairs necessary to restore the property to a condition that complies with the original contract;

– additional costs incurred to ensure the continuity of the site;

– compensation for victims (e.g. damaged neighboring building);

– legal costs incurred to defend against legal action.

Damages covered by DO insurance must be can be attributed to a design flaw and not to simple wear and tear due to time or accident (fire, flood, etc.). Conventional home insurance does not cover this type of damage, so it is important to take out DO insurance to complete your insurance coverage and have peace of mind.

How much does DO insurance cost?

The costs of property damage insurance are calculated according to the planned amount of work and the type of property to be insured. He is generally between 0.5% and 1% of the workload excluding VATi.e. between €600 and €1,200 for a working budget of €120,000 excluding tax.

The price of DO insurance can also varies according to the type of construction (single house or collective building), the geographical location (the geographical area that is more or less exposed to risks) and the level of coverage:

  • For a renovation, the average price for property damage insurance is 1.2% of the size of the work, excluding tax.
  • For a house whose budget is estimated at €100,000 excluding tax, it will take between €500 and €1,000 for DO insurance.

Most often, DO is insurance included in the price of the work and taken out by the client with the company carrying out the work. It can also be taken out directly by the individual with a specialized insurance company.

Note: It is important to note that the price of DO insurance is not fixed: it may increase or decrease depending on the changes in the original project, if the work is carried out by an individual or if the property is located in a risk zone (flood, seismic etc.). It is therefore important to inform your insurance company of the changes that have taken place so that they can adjust the amount of the premium accordingly.

Where do you buy DO insurance?

You can take out your Work Injury Insurance with a specialized insurance company or with your bank if you have a current account there. Banks often offer DO insurance integrated into the mortgages they provide to finance the work: check the terms of the contract before signing, as they may be less advantageous than those offered by specialist insurance companies.

To quickly and efficiently compare the different offers on the market, you can use a comparator for property damage insurance : available for free online, these tools allow you to know the different contracts and options available according to the insurance companies and to find the entity that will offer you the best service at the best price and adapted to your needs!

Which documents must be submitted to take out a DO insurance?

To take out DO insurance, you must present the following documents to the insurance company:

– the estimate or the construction/renovation contract;

– plan of the building;

– the building permit or the prior declaration of works;

– the building’s descriptive note.

You can also take out your DO insurance with the client or the project manager who is carrying out the work. In this case, it is important to check that the DO insurance agreement proposed by the professional complies with the applicable legal provisions.

What are the risks in case of damage to the work?

If you are not covered by the DO insurance, you must pay for the repair yourself and be reimbursed afterwards by the builder if the latter is responsible for the damage.

In the event of a dispute with the manufacturer, the DO insurance also makes it possible to take advantage of a lawyer and a construction expert. In summary, taking out DO insurance represents a modest cost compared to the risks incurred if you do not have this protection. It is therefore an essential investment for all people who want to build a house or renovate their apartment.

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