Renovation & construction
Seguro decenal for refurbishment: when is it mandatory?
Structural work does not automatically make insurance compulsory. Check the LOE scope, statutory exceptions and project documents before budgeting.
Liability and insurance are different questions
Article 17 of the LOE distinguishes liability periods for defects: one year for finishes, three for defects affecting habitability and ten for damage compromising mechanical resistance and stability. These are not three automatically compulsory insurance policies.
Article 19 sets out guarantees, while the second additional provision determines when they are compulsory. The ten-year guarantee applies to buildings primarily intended for housing, subject to statutory exceptions. Article 19.1.c provides for material-damage insurance, seguro de caución or a financial guarantee. Check the specific instrument and whether it meets the applicable requirements.
Structural work alone does not settle the requirement
For rehabilitation, assess the works against Article 2 and check the exceptions. The second additional provision includes, among others:
- an individual self-developer constructing a single detached dwelling for personal use;
- rehabilitation of primarily residential buildings whose original new-construction permissions were applied for before the LOE entered into force.
If the self-developer transfers the dwelling within the ten-year period, specific rules apply. The law provides for cover for the remaining term and possible release by the purchaser subject to the stated conditions. Therefore, “a load-bearing wall is altered, so insurance is compulsory” is not sufficient analysis.
What to check in the budget and project file
- Building use, the application date of its original permission and the precise works scope.
- The promoter's identity: a promoter may be an individual or a legal entity.
- Documented professional assessment of the applicable rules, exceptions and notarial and registration requirements.
- Where cover is required, an insurer's quotation, coverage conditions and necessary technical checks before fixing the budget.
An exemption from taking out a policy does not itself remove applicable liability for defects. Consider this alongside the full project budget and renovation budget control.
Source: consolidated LOE: Articles 2, 9, 17, 19 and the second additional provision.
Questions and answers
Does every structural intervention require ten-year insurance?
Not automatically. Check the LOE scope, building use, original permission and statutory exceptions.
Who is the promoter?
An individual or legal entity acting in that role under Article 9 of the LOE. Guarantee obligations must be assessed for the project.
Do the 1, 3 and 10-year periods mean three compulsory policies?
No. They are liability periods under Article 17. Guarantees and their compulsory status are addressed separately by Article 19 and the second additional provision.