Construction all-risks insurance (dommages-ouvrage)
Mandatory insurance taken out by the building owner (the buyer in a CCMI or the developer in VEFA) before work begins. It allows rapid repair of damage covered by the ten-year warranty without waiting for the outcome of legal proceedings. Failure to comply can create difficulties on resale. The bank requires proof of this insurance before disbursing funds.
Key points
- It is taken out by the building owner before work begins, not by the contractor.
- It triggers compensation within a maximum of 90 days without waiting to establish liability.
- Its absence on resale can block the transaction or reduce the price.
- The bank requires the certificate before any fund disbursement in construction financing.
Frequently asked questions
Why is the dommages-ouvrage insurance separate from the ten-year warranty?
The ten-year warranty is the contractor's liability obligation; the dommages-ouvrage is the pre-financing insurance taken out by the building owner. In the event of a claim, the DO enables immediate repair work without being blocked by the liability question, which is resolved subsequently between the DO insurer and the contractor.
What are the risks of selling a property without dommages-ouvrage insurance?
The notary is required to mention the absence of DO in the deed of sale, which can deter the buyer or justify a price reduction. The buyer then personally assumes the risks related to ten-year warranty defects without the benefit of the rapid compensation mechanism. In some cases, the bank may refuse financing.
How should a dommages-ouvrage policy be chosen and what does it cost?
The premium typically represents between 1% and 3% of the construction cost, depending on the nature of works and the building owner's profile. It is advisable to compare specialised construction insurers. Some insurance brokers provide comparisons; the selection must be made before works begin, as no insurer will cover a project already underway.
In practice
A private individual building their own home takes out DO insurance before the foundations are laid. Three years after completion, a major water infiltration is found: the DO insurer appoints an expert and funds the repairs in under three months, with no legal proceedings required.
Official sources
- Construction damage insurance · Service-Public.gouv.fr
- Borrower insurance for a mortgage · Service-Public.gouv.fr
- Law of 28 February 2022 (Lemoine Act) · Vie-publique.fr