Title IV: Building insurance

STANDARD CLAUSES APPLICABLE TO DECENNIAL LIABILITY INSURANCE CONTRACTS

Nature of cover

The policy covers payment for repairs to the work to which the insured has contributed, as well as to existing works which are fully incorporated into the new work and which become technically indivisible from it, within the meaning of II of article L. 243-1-1 of this code, when the insured is held liable on the basis of the presumption established by articles 1792 et seq. of the civil code in relation to construction work, and within the limits of this liability.

Repair work, particularly in the event of replacement of the works, also includes any demolition, clearing, removal or dismantling work that may be necessary.

Amount of cover (standard clause applicable only to contracts

covered by article L. 243-9 of this code)

In the case of construction work intended for use other than as a dwelling, the amount of cover may not be less than the cost of construction declared by the client, except where this cost is greater than the amount provided for in I of article R. 243-3 of this code, or where a collective insurance contract mentioned in article R. 243-1 of this code is used.

In the latter two cases, the guarantee ceiling is determined by the special terms and conditions, in accordance with the conditions set out in article R. 243-3 of this code. Where a collective insurance contract is used, this ceiling may not be less than the amount of the absolute excess stipulated in the said collective contract.

The total cost of the building is defined as the final cost of all the work involved in the construction, including all revisions, fees, taxes and any additional work. This cost includes the value of rebuilding existing buildings that are fully incorporated into the new structure and that become technically indivisible within the meaning of II of article L. 243-1-1 of this code. Under no circumstances may this cost include any premiums or bonuses granted by the project owner for completing the work more quickly than contractually agreed, nor may it be reduced by penalties for delay imposed on the contractor responsible for exceeding the contractual completion deadlines.

This cover is adjusted in accordance with the terms and conditions set out in the Declarations, to take account of changes in construction costs between the date on which the contract is taken out and the date on which the claim is settled.

Duration and maintenance of cover

The policy covers, for the duration of the insured's liability under articles 1792 et seq. of the Civil Code, work that has been started on site during the period of validity specified in the Declarations.

Cover in respect of such work is maintained in all cases for the same period, without payment of a subsequent premium.

The opening of the worksite is understood to mean a single date applicable to the entire construction operation. This date corresponds either to the date of the declaration of commencement of work, referred to in the first paragraph of article R. 424-16 of the Code de l'urbanisme for work requiring the issue of a building permit, or, for work not requiring the issue of such a permit, to the date of the first service order or, failing this, to the actual date on which the work begins.

Where a professional establishes his activity after the single date thus defined, and by way of derogation from the previous paragraph, this date is understood to be the date on which he actually begins his services.

Where a professional carries out his services prior to the single date defined in paragraph 2 and on this same date he ceases his activity, the start of the worksite is understood for him to be the date on which his contract is signed or, failing this, the date of any act which may be considered to be the starting point of his services.

Excess

The insured retains part of the cost of the claim, in accordance with the terms and conditions set out in the Declarations. He may not take out insurance for the corresponding portion of the risk.

This excess is not enforceable against the beneficiaries of the benefits.

Exclusions

The cover provided by this contract does not apply to damage resulting exclusively from :

a) The intentional act or fraud of the policyholder or the insured ;

b) The effects of normal wear and tear, lack of maintenance or abnormal use;

c) an external cause.

Forfeiture

The policyholder forfeits all rights to cover in the event of inexcusable failure to comply with the rules of the trade, as defined by the regulations in force, approved French standards or standards published by the standards bodies of another Member State of the European Union or another State party to the Agreement on the European Economic Area offering a degree of safety and durability equivalent to that of French standards.

For the purposes of this disqualification, the insured is understood to be either the policyholder who is an individual, or the head of the company or the statutory representative of the company in the case of a company registered in the trade register, or the legal or duly authorised representatives of the insured in the case of a legal entity.

This forfeiture is not enforceable against the beneficiaries of the indemnities.