What happens to the ten-year guarantee with a closed, liquidation or bankrupt business?


The ten-year guarantee is mandatory for any company operating in the construction sector. What happens to this insurance when the professional has to cease his activity?

In the field of construction, several insurance policies are required for entrepreneurs. Among them, there is the ten-year guarantee which must be taken out before the start of work. Find out what happens to this contract in the event of a business closure, liquidation or bankruptcy.

A few reminders on judicial liquidation

Judicial liquidation is a procedure put in place when a company can no longer honor its debts and is in a situation which does not allow to hope for a recovery. It often intervenes when the receivership procedure has not produced the expected results. These two procedures are very different since, unlike judicial reorganization, liquidation definitively puts an end to the company’s activity.

The opening of judicial liquidation proceedings can be made at the request of a creditor, a debtor or even the public prosecutor at the competent court. If this request is validated, the manager is relieved of his duties, the activity of the company is stopped, the proceedings are blocked and the debts held against the company become immediately payable.

Judicial liquidation or bankruptcy: the consequences for ten-year insurance

Individuals who call on a professional to carry out their construction or renovation work may fear that he will go bankrupt several months after the intervention period. However, you should know that the decennial insurance applies, even in the event of bankruptcy, within 10 years from the date of receipt of the work. The contractor’s former insurer will thus take charge of repairing the damage observed.

The situation is different when the craftsman disappears and does not deliver the site or when the judicial liquidation intervenes during the duration of the work. In this case, the ten-year guarantee cannot be implemented. The contracting authority may nevertheless claim its work damage insurance in order to take charge of claims covered by the ten-year guarantee, that is to say those which affect the solidity of the work or render it unfit for its intended purpose. This contract is taken out with the insurer of its choice, before the site opening date.

What to do without book damage insurance?

The professional who intervened to carry out your work has closed his business and you have not taken out book damage insurance? In the event of a claim, the consequences for your finances can be particularly severe. In fact, if the ten-year guarantee insurer refuses your compensation claim, you will have to go to court which will decide on the responsibilities of each, a procedure that can extend over several years.

Thus, it is better to take out structural damage insurance before starting work. As a reminder, this insurance is imposed by the Spinetta law of January 4, 1978. It is possible to find a personalized contract quickly by using an online comparator or by calling on an experienced broker. This professional knows the market perfectly and will be able to direct you to the best offers. He accompanies you and advises you throughout the subscription.

It is essential to remember that in most cases, following the closure of a business, bankruptcy or judicial liquidation, its insurer covers the amount of repairs for the damage suffered. The contact details of the insurance company appear on the decennial insurance certificate provided when signing the contract. It suffices to inform him of the situation by registered mail with acknowledgment of receipt.

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