Comprehensive building insurance
Comprehensive building insurance is also known as building performance insurance.
It protects builders against costs arising during the construction period due to unforeseen damage.
This includes, in particular, damage caused by force majeure, such as floods or storms.
However, it also usually covers damage caused by vandalism, unknown properties of the building’s soil, construction and material defects, negligence and the like.
Building insurance covers the building work from inception to completion and usually includes a maintenance period of 12 months after completion of the work.
Tailored to your needs
What coverages are possible with construction insurance?
- The most common coverages
- Damage caused by natural phenomena (e.g. floods, seismic movements, volcanic eruptions, unusual rainfall, hail and snow, etc.).
- Theft of stored material
- Damage due to strikes, riots and civil commotions
- Damage caused by terrorism
- Closure and/or demolition of the insured building site due to a claim for compensation
- Damage sustained by the building during maintenance or upkeep after its completion
- These documents are required when taking out a building insurance policy
- Building value, i.e. the total cost of the construction, including taxes, fees and charges
- Description of the building (Memoria de Obra)
- Construction budget
- Duration of the construction phase (Duration of work)
- Ten-year (Decenal)
- Geotechnical study
- Project licence
- Control report from a recognised construction control company (OCT – Organismo de Control Técnico)
Construction All Risks Insurance
Construction insurance is intended to protect builders, contractors or promoters in Spain against damage and material losses that may occur as a direct consequence of an accidental and unforeseeable cause in construction works and installations that are being carried out or are in the construction phase.
Although it is normally taken out by the builder, it can also be taken out by any other party involved in the construction, such as the developer, subcontractors, etc.
In addition, it is important to know that liability insurance is to cover damage to third parties, but not to the property on which the work is carried out.
This is a very important exclusion in the event of a claim.
Example: If I am installing glass cladding in a building and it falls to the ground and breaks, I am not covered by liability insurance. It is my own damage, as these goods are in my possession and under my care.
The spanish Seguro Todo Riesgo Construcción (All Risks Building Insurance) covers these expenses for work carried out through my fault or due to unforeseen circumstances (fire, theft, wind, hail, frost, etc.).