Decennial insurance is compulsory for any person, professional or not, working on a construction or renovation site when their work is liable to damage the built structure.
Consequently, it must be taken out by individuals, but also by craftsmen in their own name or in partnership, as well as by construction companies. From the carpenter to the plumber, from the mason to the electrician, the majority of the building trades need it, without possible exemption.
The ten-year guarantee can be taken out on an ad hoc basis, on each site, or benefit from a flat rate for the year. This is the option chosen by most professionals who exercise their trade related to the building as their main occupation. What is it for and how much does it cost?
What does ten-year insurance cover?
The main principles of ten-year insurance
It is compulsory insurance
First of all, it is advisable to take out a ten-year guarantee as soon as your field of intervention can be covered by insurance. If you do not subscribe through ignorance, negligence or omission and an event engages your liability within ten years of the work, you will have to reimburse the damage yourself. In addition, you expose yourself to both civil and criminal penalties. It is therefore wise not to play with fire …
For what types of work?
Ten-year insurance is imperative for all structural work, that is to say those which ensure the stability and solidity of the structure. These require many interveners who will work mainly on the foundations, walls, framework, slabs and roofing.
The ten-year guarantee also concerns the finishing work, that is to say those intended to fit out the interior and exterior of the building. These finishes also involve many craftsmen in charge of insulation, electricity, heating, plumbing, carpentry and heating.
The only exclusion from the ten-year insurance applies to work having only an aesthetic aim. Very often, this work will be guaranteed by a professional civil liability or a two-year guarantee.
And for what guarantees?
The ten-year guarantee is triggered if damage occurs to a structure inseparable from the building. It does not matter whether the damage caused results from fault, negligence, faulty workmanship or a construction defect.
If the property on which you have worked becomes temporarily uninhabitable, if it becomes unfit for its use and destination or if its solidity is called into question, the ten-year guarantee comes into play and covers the damage caused.
It is the ten-year insurance that compensates the damage suffered by your client, within the limits of the deductibles and ceilings provided for in the contract. You therefore do not have to reimburse the entire damage out of your own pocket or that of your company.
Subscription deadlines and action deadlines
The ten-year guarantee must be taken out on time to be valid. In order to comply with this condition, it is necessary for the warranty to take effect prior to the start date of the work.
The ten-year insurance is valid for ten years from the date of the contract. However, this period will be extended in the event of a guaranteed event. For example, if the ten-year period is put into play for six months for housing rendered uninhabitable, it will be extended to 10 years and 6 months.
What is the cost of a ten-year guarantee?
Why are the prices variable?
The price of ten-year insurance varies considerably depending on the activities you carry out. The more risky your business is, in the sense that it can alter a construction, the higher the ten-year guarantee rate.
However, this is not the only criterion that impacts the cost of the insurance contract. Several criteria must be taken into consideration, here are the most important:
- The size of the site you are working on and the total value of the construction or renovation
- The location of the site, because the ten-year guarantee may have different prices depending on the geographical areas, both because of natural risks and the observed loss rates
- The importance of your company, its turnover, its legal status, its labels and its number of employees
- The age of your company and its loss experience, if you have never activated the ten-year guarantee when you have worked on many sites, you have a definite advantage
- The deductibles and ceilings provided for in the contract, the higher they are, the more the cost of insurance is reduced
Finally, remember that one of the criteria causing the price of ten-year insurance to vary, sometimes from simple to double, is quite simply the choice of the insurer! This is why comparing the offers available before subscribing is important. Moreover, we recommend that you compare them even after subscription, in order to change insurer on the expiry date of your contract if you find better elsewhere.
How much does it take for a ten-year guarantee for the year?
As you will have understood, it is impossible to give you a precise price without knowing your exact situation. Nevertheless and to give you an idea of the prices charged, here are some main lines generally observed:
- A micro-entrepreneur pays less because his turnover is limited by his status
- A craftsman or a company that has no ten-year insurance history pays more than an entity that has been insured for 10 years without any loss
- A craftsman or a building company that has declared several claims will pay an additional premium to be able to insure
- The more risky the activities are, the higher the cost of insurance, this is particularly the case for carpenters or roof waterproofers.
Overall, the rates for a ten-year guarantee range from 1,000 to 10,000 euros for the year, except for very large construction companies which pay much more. In the end, the cost of a decade represents between 1 and 10% of your turnover.
How to find the best price for a decade?
For this specific guarantee, it is very useful to use an online comparison tool. This simulator will look for you for the suitable contracts for the only activities that you need to cover.
By conscientiously completing the form, you gain access to the best ten-year guarantee offers available on the market and bring in competition from a large number of insurers.
You can go further by asking to receive quotes for the offers that you think are the most interesting. You will then have time to compare the guarantees to choose the best value for money for your activity.
Repeat online comparisons once or twice a year to make sure you still have a relevant offer. In all cases, remember that it is necessary to be covered in ten years before each worksite and that any change in activity, whether it is a removal or an addition, should be reported to your insurer during the contract.