Compulsory for professionals as for individuals as soon as they carry out construction, renovation or extension work, property damage insurance provides compensation to the owner of the property in the event of poor workmanship on the structural work and the finishing work.
If the price of a structural damage guarantee may seem high, it is above all because the loss experience is just as high. We explain how the price of the property damage insurance is calculated, at what price to expect, and how to subscribe to it at the best value for money?
Preamble: the usefulness of structural damage insurance
Structural damage insurance guarantees the owner of a building for 10 years following the work he has undertaken or had undertaken. The insurance premium is therefore paid in one go, before the start of work, to guarantee 10 years of peace of mind.
Indeed, unlike ten-year insurance, the structural damage guarantee intervenes very quickly and avoids time-consuming and costly legal procedures for the owner of the property.
On the other hand, structural damage insurance covers exactly the same claims as the ten-year guarantee. The big difference is therefore based on immediate compensation thanks to the non-liability of the craftsmen who took part in the work.
Structural damage insurance intervenes in particular in the following cases:
- If the strength and stability of the structure are compromised (foundations, walls, roofs, etc.)
- If the property no longer conforms to its intended use (water infiltration, poor insulation, endangering health, etc.)
- If the damage is not of a purely aesthetic nature
- If the damage is not due to a lack of maintenance
The price of the work damage insurance will therefore be set by the assessment of the risk specific to the construction, depending on the amount of the work and other criteria such as the location of the building.
Determining the price of property damage insurance
Damage insurance is a contract primarily useful to protect the owner of a work. Conversely, ten-year insurance is a contract that primarily protects the craftsman in his capacity as a building professional.
As a result, the way in which these two insurance policies are calculated is quite different. For structural damage, it is the amount of work that is decisive, while for the ten-year period, it is the risk based on the company that is studied.
In the end, regardless of the status of the subscriber of the property damage insurance. Whether it is a professional such as the real estate developer or an individual such as the master, the price of insurance will not differ very much.
Here are the decisive elements on which insurers rely to build their rate proposal for structural damage:
- The type of building where the work is carried out: single-family house, building, condominium apartment, commercial premises, agricultural or industrial building, etc.
- The type of work carried out on the structure: construction, rehabilitation, renovation, improvement, extension, expansion, etc.
- The destination of the work: personal or professional use, rental investment or real estate resale project, etc.
- The amount of work undertaken and their nature, all of which are not insurable
- The overall cost of the structure: its value before and after the work
- The subscription of optional guarantees: this can be for example the guarantee of good functioning or the guarantee of immaterial damage after reception of the work
- The presence of preliminary studies: aimed at reducing the risk of disasters, this can include ground studies, technical inspector reports, etc.
Add to all these criteria the part of subjectivity and the internal pricing policy specific to each insurer, and you understand that the cost of structural damage insurance varies from one risk to another, from one site to the next. other.
The cost of structural damage insurance
As we have seen, the price of the book damage insurance paid by Pierre will not be the same as that paid by Jacques. And it is not by chance, since Pierre is the owner of a Haussmanian building that he is having renovated while Jacques is having a two-room house built in the Creuse …
However, even if the rates vary from one insurer to another and from one site to another, here are some big figures to remember about the cost of a structural damage:
- There is a floor price of around 3,000 euros below which the insurer does not go down
- The amount of the average premium for structural damage in France is around 4,000 euros
- The ratio used to calculate the premium generally decreases as the amount of work increases, creating a ceiling price
- The disparity in prices is significant, since the structural damage guarantee generally represents between 1 and 8% of the total amount of the work.
Ultimately, to obtain both the best price and the best guarantees, the future insured has every interest in comparing the contracts offered by insurers.
Structural damage insurance at the best value for money
As the loss rate is high in the construction industry and in construction in general, the damage-to-work insurance constitutes a risk guarantee for the insurance players in the market.
As a result, many people no longer offer this type of insurance, in order to better manage the risks that are based on the outstanding amounts of their policyholders. The choice of your future insurer is therefore relatively limited, even if there are still dozens of competitors in France.
And to compare the guarantees they offer and study their prices in order to choose the highest bidder, the web offers you a superb tool. Thanks to the online property damage insurance simulators, you can do without the services of a broker to contract your insurance. A guaranteed service free of charge and without obligation!