House structure insurance
Structural house Insurance: Something every house buyer should know. This is a legal right for houseowners. If, after purchasing a house, you discover structural defects, substandard quality, or damage leading to endless repairs, you can claim insurance from the developer or seller.
Let's look at what structural house insurance is, what it covers, and the warranty period for each part of the house, so you can secure this right before taking ownership of your new house.
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What is Structural house Insurance and its Benefits?
Structural house insurance is a guarantee of the safety and quality of the building as legally agreed upon in the purchase and sale contract. Generally, house insurance has a defined duration and conditions under the law, which are included in the Civil and Commercial Code and the Land Act.
When signing the purchase and sale contract, the seller will clearly specify the conditions to guarantee responsibility and repair in case of damage to various parts of the house.
Having house insurance guarantees the stability and quality of the building you will acquire as your future property. Because you will have the right to claim insurance in the event of damage or defects in the house structure, other equipment, and systems resulting from the original installation and construction.
The project developer or seller will be responsible for all of this, and you will not need to bear the cost yourself. Therefore, before signing a house purchase contract, you should carefully review the details to avoid being disadvantaged.
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Laws Related to Structural house Insurance
Structural house insurance is already included in the law. This means that before signing a purchase and sale contract, the buyer needs to read the details and understand the laws regarding this matter. Generally, the laws related to structural house insurance include:
Civil and Commercial Code
States that if the house buyer finds defects or damage to the house after the transfer of ownership, the seller is responsible. The buyer can sue for liability within 1 year from the date of discovery of such damage. However, if the buyer was aware of the defects or damage before agreeing to the transfer of ownership contract, they cannot sue the seller.
Land Allocation Act
Considers the standard contract regulations for the transfer of ownership of land or buildings, stating that the seller is responsible in case of damage to the house.
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Details of Structural house Insurance for Each Part
The warranty details for each part of the house vary, with different coverage periods as follows:
1. Structural Warranty:
The seller is responsible for damage to piles, foundations, columns, beams, floors, roof structures, and load-bearing walls. This coverage lasts for 5 years after the transfer of ownership.
However, if the damage is caused by the buyer's own construction, the buyer has no right to sue the seller.
2. Equipment and Fixture Warranty:
The seller is responsible for damage to essential building equipment or fixtures, including the front door, fence, wall, stairs, interfloor space, railings, roof, ceiling, doors, windows, bathrooms, and electrical and plumbing work.
If these items are damaged or broken after the buyer has occupied the property, the buyer can sue immediately. This coverage lasts for 1 year after the transfer of ownership.
However, damage resulting from additions or new constructions according to the buyer's own wishes is not covered by this law. The seller will be responsible for defects or damage to various parts of the house, as follows:
3. Doors, Fences, Walls, and Railings:
Insurance claims can be made in cases where the front door cannot be opened or closed, cannot be locked, or the sliding track is out of track. 1. Walls and Fences: Cracks and other damage caused by the house's structure are covered only. Coverage does not include paintwork or natural rusting.
4. Roof and Ceiling: Insurance claims can be made in case of leaks, including leaky, broken, or seeping pipes.
5. Walls and Floors
Insurance claims can be made for unsatisfactory wall and floor finishes, provided the buyer notifies the project developer 1-3 months in advance for repair arrangements. This insurance does not cover floor expansion, contraction, or cracking/collapse.
6. Stairs
Insurance claims can be made for expansion and contraction of wooden stairs, but do not cover cracking or collapse.
7. Doors and Windows
Insurance claims can be made for expansion and contraction of door or window frames, but only for repainting and adjustment. This also covers manufacturing defects and rainwater leaks, which will be sealed by a technician.
8. Bathrooms
Insurance claims can be made for substandard or pre-existing defective sanitary ware, or damage during installation. The buyer must discuss the details of responsibility with the project developer, including whether it covers labor only or both labor and materials.
9. Electrical and Plumbing Systems
Insurance claims can be made for electrical leaks, short circuits, or electrical faults. Plumbing warranties only cover leaks, seepage, and breakage of pipes.
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What other necessary insurances are there?
In addition to the warranty covering the house structure, equipment, and various parts of the house as stipulated in the Land Allocation Act... There are other insurance policies you should consider purchasing to provide continued protection in case of other types of damage.
Since structural house insurance doesn't cover all damages detailed above, any damage beyond that means the houseowner will have to bear all the costs of maintenance, repair, and upkeep. Having supplemental insurance to manage this is a better solution.
Other insurance policies you should consider for your house include:
Fire Insurance:
Covers damage to the house and property from fire and other specified perils such as lightning, explosions, vehicles, water, etc.
Property Insurance:
Covers damage or loss of property, furniture, and valuables within the house.
Burglary Insurance:
Covers damage or loss of property due to break-in, robbery, and theft.
Disaster Insurance:
Covers damage to the house from storms, earthquakes, and floods.
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Owning a house is not easy. Besides preparing money and various expenses, understanding your legal rights and benefits is equally important. Structural insurance for a new house is another important aspect that prospective housebuyers should research further.
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Source of this article: DD Property
