How to insure the building of your dream home

The ins and outs of vital protection

When the decision is finally made to build your own home, and whether you decide to build in your own name or that of a company, insurance experts strongly urge you to make certain you have the following insurance:

El Seguro Decenal, (Or, Ten Year Guarantee Insurance) This is actually an insurance coverage which is mandatory based on the Spanish Law of Municipal Planning and Building, 33/1999. This law requires that the owner or promoter contracts an insurance which supplies a ten-year guarantee covering the basic building, including foundations.

The insurance covers damages resulting from faulty products and errors in the execution of the project. It also guarantees the stability and quality of the fundamental construction.

This insurance gives the owner/promoter a considerable value added, not only for the owner, but very critically for a subsequent buyer, in the case the property is sold within the ten-year guarantee period.

When contracting this insurance, the owner/promoter also will receive additional assistance and control from a certified technical service (OCT), right from the beginning of the construction, which assures the building and materials comply with the current legislation.

Third Party Liability Insurance. Although the builder must have his own third party insurance, it is very highly recommended that the owner/promoter also contracts a third party insurance. This provides important and considerable cover for the owner against any claims that might result from damages caused to third parties.

Construction Insurance: Though many builders may contract this insurance, others do not. It is very highly recommended the owner/promoter asks the builder for proof of this insurance. This insurance covers the basic damages and losses that the work in progress might suffer from various causes during the construction, such as fire, explosion, storm, lightening, vandalism. The builder is not responsible for these accidental damages and risks.

Although much of the above might at first seem complicated, a qualified and experienced insurance broker who regularly works in this sector can easily and readily resolve any doubts you might have. He can also assist in obtaining the correct policy and coverage at the best of premiums.

So, now the day has finally come, you have the keys of your new home. That is when your new dream home and all of its contents can be protected through the correct Multi-Risk Home Policy which protects your house, its contents, and your family.

Please Note: An insurance broker is both professional and independent. He obtains the best for you without it costing you anymore. In fact, because he is independent, he is often able to save you, the client, a considerable amount of money.

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Seippel & Seippel

Gran Via Puig des Castellet, Bl. 2, local 1 - Boulevard de Santa Ponsa

Dr. Helen Cummins is a lifestyle editor, publisher and successful entrepreneur, who has lived and worked in Palma de Mallorca for the past 20 years. She started abcMallorca.com in 2003 which has grown into one of the island’s largest websites with over 6 million visits per annum.

Her website helencummins.com is a compilation of all the things she values since moving to the island, running hc/ Digital Media and creating an idyllic life in Son Vida with her husband Georg and daughter Eva.

Slow Luxury Living is what sits at the heart of the hc/ website, which aims to inspire people to slow down and appreciate the Mediterranean lifestyle. Alongside her editorial team, Helen handpicks businesses and places that adhere to SLOW: Sustainable, Local, Organic and made with Love.

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