What the decennial guarantee covers
The decennial guarantee covers material damage caused by defects affecting foundations, supports, beams, slabs, load-bearing walls or other structural elements that directly compromise the mechanical resistance and stability of the building (LOE art. 17.1.a).
It does not cover habitability defects (3-year tier) or finishings (1-year tier). It also excludes natural wear and damage caused by misuse.
The mandatory decennial insurance (LOE art. 19)
LOE art. 19 forces the developer to take out property damage insurance or surety insurance that guarantees, for 10 years, the indemnification of decennial damage. Without this insurance, the developer cannot formalise the handover before a notary (LOE art. 20).
The insurer responds directly to the buyer, which is especially relevant where the developer has gone bankrupt or disappeared.
How to trigger the decennial insurance
Usual steps:
- Identify the insurer: the decennial policy is included in the new-build deed. Request it from the notary where you completed.
- Notify the claim to the insurer in time, with description, photos and, if possible, preliminary expert report.
- Contradictory survey: the insurer appoints its expert; you may appoint yours if there is no agreement.
- Compensation: if accepted, the insurer indemnifies under the policy.
- Claim against the insurer if it rejects or undervalues.
Time limits: 10 years + 2 years
10 years from the date of works acceptance (LOE art. 6), not from the delivery of the unit. And within that window, 2 years to file the claim from the moment the damage manifests (LOE art. 18).
Typical decennial cases
- Partial slab collapse due to under-sizing.
- Progressive cracking in columns due to differential foundation settlement.
- Bulging of load-bearing walls.
- Underground waterproofing failure affecting foundations.
- Structural deficiency preventing normal use of entire floors.
Frequently asked questions
Is the decennial insurance really mandatory?
Yes, for residential buildings. Without the policy the new-build deed cannot be registered (LOE art. 20). There are exceptions for self-promoters of single-family homes for own use.
What if the developer doesn't give me the policy?
It is enforceable via formal request. The note about the insurance is also recorded at the Land Registry. If the developer refuses, sue.
Does it cover damage to neighbours?
Yes, the policy covers material damage in the building, including common areas and, depending on conditions, indirect damages to owners arising from structural defects.
Can I sue the insurer directly?
Yes. Direct action against the insurer is common and usually the fastest route when the developer has disappeared.