Wikiavanza

Wikiavanza

Decennial Insurance

The law requires that a damage and security insurance be taken out to guarantee compensation for material damage caused by defects in the building for 1, 3 and 10 years. Characteristics of this ten-year insurance we can identify are:

  • In the deeds of new construction in progress, the compulsory nature of the registration of the completion of the work shall be stated, at which time such guarantees shall be required.  
  • They are only required for buildings whose main purpose is housing.
  • Individual self-builds, whether a natural or legal person, are exempt from the ten-year insurance for the construction of a single family dwelling for their own use (whether it is a first or second home, and even if it is a merely temporary residence). In the case of "inter vivos" transfer before 10 years have elapsed, the self-build party, unless the acquirer is exempt and has previously provided proof of having used the home, will be obliged to take out the ten-year guarantee for the time remaining to complete the 10 years.