House Builders (CMI)
Package guarantees for your business
The law n°90-1129 of 19/12/1990 regulates the activity of the builder of individual houses and imposes in particular the delivery of various guarantees to protect the customer of the builder.
Financial guarantees and bonds
This guarantee covers the risk of non-execution and/or poor execution of the works provided in the construction contract of a detached house due to the failure of the builder.
The purpose of the money-back guarantee is to reimburse the down payments made by the customer in the event of the house builders’ default.
The builder is required to issue guarantees that cover the payment of contracts signed with his subcontractors (article L241-9 of the Construction and Housing Code).
Third Party Liability and damage insurance
The builder of detached houses must provide and/or propose to his client the usual guarantees linked to the building site.
This insurance covers the third party liability of the builder of an individual house due to his business and professional activity. It is generally taken out on a yearly basis.
This insurance covers the decennial liability of the builder of a detached house within the meaning of Article 1792 of the Civil Code.
This is an insurance that covers damages to the decennial work. It aims to pre-finance the repair works. DO insurer makes a recourse against the person responsible of the damage. This legal guarantee is made compulsory by Article L242-1 of the Insurance Code.
This insurance covers the so-called “non-performing” builder (project owner, seller after completion, property developer, etc.) from the consequences of his decennial liability likely to be characterized within the meaning of Article 1792 of the Civil Code (Article L241-2 of the Insurance Code). This guarantee is essential in particular in the event of sale of the building constructed within 10 years of its completion.
Damage guarantee is optional, however, it is recommended and usually imposed by the various parties to the construction operation (companies, contractor, bank, guarantor, etc.). It is usually intended to cover damage to the work during the construction period. Its main purpose is to cover serious damages to the work that may result from natural phenomena or from the actions of contractors or third parties.
