Postuma Indennitaria Decennale Policy

Technological Risks
Other Property Damage Products

Postuma Indennitaria Decennale Policy
Law No. 210 of August 2, 2004, and the subsequent implementing decree (Legislative Decree 122 of June 20, 2005) impose on the builder the obligation to take out a ten-year indemnity insurance policy for the benefit of the buyer, effective from the date of completion of the works. This policy covers material and direct damages to the property and damages to third parties, as per Article 1669 of the Civil Code.

The policy covers damages resulting from the total or partial collapse of the work or from serious construction defects, due to soil defects or construction defects, which manifest after the signing of the final purchase or assignment contract. The coverage is limited to parts inherently designed for long-lasting use. The policy must be available at the time of the property transfer. The sums insured are distinguished by Sections and Items.

Regarding the Material Damage Section, the items are:

Works (estimated reconstruction cost, mandatory item);
Costs of demolition and removal (sum at first risk, agreed, optional).
For the Civil Liability Section, the coverage is determined by an agreed limit, not less than €500,000.

Policy Compromise for Indemnity Postuma Decennale for Direct Property Damage
The new product completes the previous one by adding the possibility of concluding the contract in the form of a compromise before the start of the work, in conjunction with the signing of the CAR policy.

What Risks Does the Policy Cover?
The insurance covers the property during the first ten years following the completion of the works, including damages unintentionally caused to third parties as a result of an insurable event according to Section A, and arising from:

Total or partial collapse;
Serious construction defects;
Provided that these events arise, as stipulated in Article 1669 of the Civil Code, from an accidental soil defect or an accidental construction defect and affect parts of the property intended by their nature for long-lasting use.
The specific exclusions are listed within the Insurance Conditions. For detailed aspects, please refer to Articles 1, 3, and 15 of the Insurance Conditions.

Effect and Duration of Coverage
To make the insurance contract valid and ensure coverage, it is necessary to present to the Companies the final testing certificate of the work and any other agreed documents, such as those issued by a Technical Control Company, in order to issue a coverage activation appendix and collect the remaining premium installment.

The contract has a duration of ten years and is stipulated without tacit renewal. The guarantee will end on the expiration date set in the policy and, in any case, no later than 10 years from the completion of the works, without the need for any communication.

Who Must Take Out the Policy?
The Postuma Indennitaria Decennale insurance policy is a product designed to protect the property rights of buyers of newly constructed properties and is usually taken out by the builder.

Issuance
The issuance of the product is guided by the information system. The process is similar to that of the Postuma Decennale product, except that the CAR policy number must be indicated, the premium at the signing is a percentage of the agreed amount for the policy (usually 20%), and the effective and expiration dates are presumed since they must be confirmed upon activation of coverage.

Rate and Underwriting Limits
The rate also substantially follows that of the Postuma Decennale product.

Type:
Legal obligation guarantees.

Group:
Direct material damages, Civil liability damages.

Legal References:
Law No. 210 of August 2, 2004
Legislative Decree 122 of June 20, 2005

Usual Policyholder:
Builder, Contracting Company.

Usual Beneficiary:
Property Owners, in proportion.

Duration:
10 years from Static Testing with a positive outcome.

Extensions:
No.

Special Clauses:
Multiple (waterproofing, envelopes, coatings, serious defects that do not compromise the stability of the work...) currently not granted.

Specific Documentation to Acquire:
Questionnaire accompanied by the indicated documentation.