The ten-year structural warranty insurance is for property developers, construction companies, and self-builders. It meets a legal requirement and provides security, financial protection, and safeguards your asset.
When building a house—whether you are a private individual or a professional property developer—you usually focus on planning, materials, budget, or construction period. You rarely consider that things might go wrong or that hidden defects may appear years later. But it happens: structural damage can require expensive repairs or even demolition. The key question is: who pays?
At Dylsi, we have the answer: a ten-year structural warranty insurance policy (known in the UK as a structural warranty) covers these costs if the developer has the policy. In Spain, the insurance is sometimes voluntary, sometimes compulsory. In this article, we explain everything you need to know: what it is, who it protects, and why it matters.
What is the ten-year structural warranty insurance?
In Spain, the ten-year structural warranty insurance is compulsory for the construction of residential buildings intended for sale. Its purpose is to cover the legal liability set out in the Spanish Building Act (LOE) for a period of ten years.
It specifically covers damage to the building caused by faults or defects affecting the foundations, columns, beams, ceilings, load-bearing walls, or other load-bearing components that directly compromise the building’s mechanical strength and stability.
In other words, it protects against serious structural defects that could compromise the building’s stability.
Who does the ten-year structural warranty insurance protect?
Although often seen as a developer’s obligation, the ten-year structural warranty insurance mainly protects the end customer who buys the property.
Should any structural defects arise within ten years of the completion of the building project, the insurance will cover the costs of rectifying the damage.
At Dylsi, we stress that this insurance also provides peace of mind for developers and contractors: if there is a claim, AXA, as the insurer, will pay compensation in accordance with the policy.
Is it always mandatory?
The ten-year structural warranty insurance is mandatory if the developer plans to sell the property. Without this policy, the new building cannot be registered in the land register.
If a client builds a property for their own use, they do not need this insurance at first. But if they sell the property within ten years of completion, they must get it. If not, they are personally liable to the buyer.
Many self-builders take out insurance to protect their assets, even when not required by law.
What damages does it cover?
The ten-year structural warranty insurance covers only serious structural damage that affects the building’s stability. The following are not covered:
- Aesthetic defects
- Defects in workmanship
- Defective non-load-bearing fixtures
- Damage due to a lack of maintenance
It is important to know this difference. Clients often mix up this insurance with other types, such as professional liability or comprehensive construction insurance.
What is the significance of the ten-year structural warranty insurance in the Balearic Islands?
The Balearic Islands have many construction projects: new builds, major renovations, and many homes built by private developers for sale or investment. Here, ten-year structural warranty insurance is a key tool for legal certainty.
International buyers trust the security and professionalism that ten-year structural warranty insurance provides.
How do I know whether I should take out a ten-year structural warranty insurance?
Building a house is a major investment for an individual or a developer. Construction defects can lead to high costs and lengthy legal disputes.
Sound insurance advice helps you avoid delays in notarisation or land registry. At Dylsi, we specialise in professional indemnity and business insurance. We advise self-builders, construction companies, and developers to ensure every project is properly covered from the start.
If you are planning, marketing, or managing a construction project, check what insurance you need and when to get it. Contact us for a first needs assessment.
