What Is Decennial Insurance?

The builder or developer usually purchases decennial insurance at the start of the construction project. The policy covers potential defects in the building’s structure, including issues with the foundation, walls, roof, and other load-bearing elements. If a structural defect is identified during the coverage period, the insurance will cover the cost of repairs or compensation for the damage. It typically provides financial protection for the property owner, ensuring they are not left with the burden of repairing significant structural problems.

Types of Risks Covered by Decennial Insurance

Decennial insurance covers a range of risks that can impact the structural integrity of a building. These include:

1. Foundation Issues

Foundation problems, such as settlement or cracks, can undermine a building’s stability. Decennial insurance will cover the costs associated with repairing or replacing faulty foundations.

2. Roof Damage

Decennial insurance also covers damage to the roof, including leaks, structural issues, or improper installation. This ensures that the property remains watertight and structurally sound.

3. Structural Defects

Any defects affecting the load-bearing elements of the building, such as walls, columns, and beams, will be covered.

4. Plumbing and Electrical Failures

In some cases, decennial insurance may cover plumbing or electrical failures if they are considered part of the building’s structural system and pose a risk to the overall safety of the property.

5. Cracks and Subsidence

Any issues related to cracks in the building’s structure or subsidence could lead to the foundation sinking or shifting.

Who needs decennial insurance?

Contractors, architects, and other construction professionals require decennial insurance to protect against the financial risks of building collapse or concealed structural issues within ten years post-construction.

How long does decennial insurance last?

Decennial insurance generally lasts for ten years, protecting against structural defects that may occur within this period.

What does decennial insurance cover?

Decennial insurance covers structural defects in the building’s foundation, roof, walls, and load-bearing elements. It ensures that the property remains safe and stable over the long term.

Can I purchase decennial insurance as a homeowner?

While the builder or developer usually purchases decennial insurance, homeowners benefit from the coverage by purchasing a property with this insurance already in place. Buyers should ensure that the property is covered by decennial insurance before buying.

What is the cost of decennial insurance?

The cost of decennial insurance depends on factors such as the size and complexity of the construction project. It is generally included in the overall cost of the property or construction project, though homeowners can inquire about the policy’s specifics if needed.