Decennial insurance in Morocco: the BTP's mandatory cover

Law 59-13, which amends the insurance code and took effect in 2016, introduced two mandatory insurances for permit-bound constructions: "all-risks site" insurance (covering risks during the works) and decennial civil-liability insurance, supplemented by inherent-defects cover. The aim is to protect buyers and occupants against serious defects appearing after handover. Certain categories of work and individual housing not intended for sale may qualify for exemptions. The insurance certificate is required notably to obtain the habitation permit. Non-compliance exposes parties to penalties and personal liability.

They are two complementary sides of the same protection. Decennial liability is taken out by the builders (contractor, architect, engineering office): it covers THEIR responsibility if, within ten years, the work shows defects compromising its solidity or making it unfit for purpose. Inherent-defects (DO) insurance is taken out by the owner: it pre-finances repairs of those same defects without waiting for a court to name the culprit, then the insurer pursues the at-fault builders. In practice, DO lets the victim be compensated quickly; decennial ultimately funds the repair. A well-insured project combines both.

Decennial cover applies to serious damage appearing within ten years of handover that either compromises the work's solidity (collapse, subsidence, structural cracks) or makes it unfit for purpose (infiltration making a dwelling uninhabitable, major waterproofing failure, problems affecting equipment elements inseparable from the structure). It does not cover minor aesthetic defects, normal wear, lack of maintenance, or defects falling under shorter guarantees (completion, proper functioning). The line between a decennial defect and a simple flaw is sometimes technical: a survey often decides, hence the importance of a control office from the design stage.

It depends on the project's nature. Law 59-13 provides exemptions, notably for individual housing built by a natural person for their own use and not intended for sale. However, as soon as there is a sale (a developer selling apartments) or for works subject to the obligation, construction insurance is required. Even when not mandatory, taking out inherent-defects cover is strongly advised for an individual building a villa: in case of serious cracks or infiltration within ten years, it avoids having to prove and pursue each party yourself. Check your precise situation under the law before starting.

The cost is expressed as a percentage of the works cost. As a guide, decennial liability often represents 0.5 to 2% of the works cost, inherent-defects cover 1 to 3% of the construction cost, and CAR 0.2 to 0.8% of the contract amount. These rates vary widely by size and complexity of the project, techniques used, qualification of parties and above all the technical control office's report, whose favourable opinion often conditions both subscription and pricing. A well-designed project, monitored by a recognised engineering office and controller, secures better terms. Comparing several construction-specialist insurers optimises these significant lines of a development budget.

Timing is decisive. Contractors' all-risks insurance must be taken out before the site opens, as it covers losses during the construction period (collapse, fire, weather, theft). Decennial liability and inherent-defects cover must be in place no later than handover, the starting point of the ten-year period. Subscribing afterwards is very difficult, even impossible, because the insurer wants to follow the project from design via the control office. Anticipating avoids two major pitfalls: a cover gap during the works and a blockage of the habitation permit, which requires the construction insurance certificate.