Building a House in an Existing Structure: The Insurances to Consider

The interest in building within existing structures is an increasingly relevant topic in the world of real estate and construction. This approach, which involves renovating or rehabilitating existing buildings instead of constructing new ones, offers several advantages. It not only helps preserve architectural heritage but also contributes to sustainable development by reducing the ecological footprint associated with new constructions.

However, building in existing structures presents unique challenges, especially in terms of complying with current construction standards, managing risks related to the condition of existing structures, and adapting to modern needs in terms of comfort and energy efficiency. In this context, insurances play a crucial role. They provide financial protection against specific risks associated with building in old structures, such as accidental damages during the works, hidden defects, or unexpected construction faults. They can also cover the liability of builders and craftsmen in case of poor workmanship or non-compliance, ensuring safety for both owners and professionals involved in the project.

Understanding Old Structures : Specifics and Challenges

Building in old structures refers to the process of renovating, rehabilitating, or converting existing buildings. Instead of constructing a new edifice, this approach focuses on using and improving already existing structures.This method not only has ecological interest in reducing the consumption of new resources but also heritage interest in preserving architectural history.

Existing Structure

One of the main challenges is the condition of the existing structure. Old buildings may have issues such as fragile foundations, damaged load-bearing walls, or other structural elements that require special attention. Assessing the structural integrity before undertaking any work is essential.

Safety Standards

Safety and construction standards have evolved over time. Adapting an old building to current standards can be complex, particularly in terms of insulation, electricity, plumbing, and heating systems.

Heritage Preservation

When renovating historical or characteristic buildings, it is important to preserve significant architectural elements. This may require specific and sometimes more costly construction techniques to maintain the aesthetic and historical integrity of the building.

Surprises and Unforeseen Issues

Construction projects in old buildings often face surprises, such as the discovery of hidden defects or problems not apparent during the initial assessment. This can lead to additional costs and delays in the project.

Integration of Modern Technologies

Updating an old building with modern technologies, such as efficient heating systems, LED lighting, or high-performance insulation, can be a challenge, especially when seeking to preserve the original appearance of the building.

Regulations and Permissions

Construction projects in old buildings may be subject to specific regulations, especially if the building is listed or located in a protected area. Obtaining the necessary permissions can be a long and complex process.

Types of Essential Insurances

Damage-Work Insurance

Damage-work insurance is designed to pre-finance repairs of defects that might occur after the completion of the works, without having to wait for a court decision. It is mandatory in France for any project owner (person who has work done) in the context of significant construction or renovation work.This insurance intervenes in case of damages covered by the ten-year guarantee, thus covering construction defects that compromise the solidity of the structure or make it unfit for the intended use.

Project Owner's Civil Liability Insurance

This insurance covers the project owner against damages caused to third parties during the works. It is particularly important in the context of renovating old buildings, where the risk of accidents or damage to third parties (such as passersby, neighbors) can be higher due to the age and condition of the structure.It covers bodily, material, and immaterial damages caused to third parties during the construction period.

Other Specific Insurances

The ten-year insurance, which is mandatory for builders, covers construction defects appearing within ten years following the delivery of the works. It is crucial for ensuring the repair of damages that affect the solidity of the structure or its integral elements.

All-Risk Construction Site Insurance (TRC)

This insurance covers all damages that might occur on the site, whether due to an accident, natural causes, or human errors. It is particularly useful for construction in old buildings, where the risks of unforeseen damages are higher.

Professional Insurance for Contractors

Even though it’s not an insurance for the project owner, it is important to ensure that all contractors and craftsmen involved in the project have their own professional liability insurance.

Choosing the Right Insurances : Criteria and Advice

Compare Guarantees

Study the guarantees offered by each insurance to ensure they cover all the essential aspects of your project. Compare insurance premiums, but keep in mind that the cheapest option is not always the best. Balance the cost with the extent of coverage. A good way to do this is to use platforms that collect reviews from insureds like Green Opinion.

Adapt Insurances According to Project Specificities : Age and Condition of the Building

If you are working on a particularly old or poorly conditioned building, you might need additional guarantees to cover the specific risks related to its condition. Adapt your insurance according to the type of work (light renovation, complete rehabilitation, preservation of certain historical features, etc.).

If your project involves compliance with specific heritage or environmental standards, ensure that your insurance covers the additional costs or risks associated with these requirements.