Law 38/1999, of November 5, on Building Regulation (LOE) requires real estate developers to take out mandatory ten-year insurance. The entire building is guaranteed against damage due to material defects, design errors, or execution errors that originate in or affect the fundamental works and compromise the stability of the building.

The primary object is the construction project itself, understood as the set of permanent and temporary works completed or in progress, against accidental and unforeseen risks. These concepts also include auxiliary works, as well as materials, supplies, and stockpiles for the insured project.

This is a type of construction insurance intended for civil engineering works, covering any damage to the construction except for what is expressly excluded, provided that the damage or losses are a direct consequence of an accidental and unforeseeable cause.

Among activities involving risk, construction holds a prominent place regarding liabilities, as the construction process is a complex operation from both a technical and legal perspective. This insurance is aimed at companies in the construction sector (building or civil engineering), whether they are developers, contractors, subcontractors, or, in general, any company participating in the construction process.

It covers material damage to the building resulting from flaws or defects in the secondary works, installations, and waterproofing.

The covered risks are material damage and losses suffered by the insured machines as an immediate and direct consequence of an accidental, sudden, and unforeseeable cause.