“Insurance of hidden defects”


Compensation in case of the occurrence of a total loss or partial damage to buildings delivered for operation, used by the INSURED in accordance with the activity indicated by him in the Application-questionnaire.


Under this Section, the INSURER provides coverage for the expenses of the INSURED related to:

  • eliminating damages resulting from the appearance of an internal defect in the structure of the building;
  • rescue operations or immediate actions related to preventing the occurrence of an insured event;
  • professional consultations;
  • clearing and removal of debris from the plot on which the building is located;
  • in relation to any building/buildings specified in the Application-questionnaire and the insurance policy.


By special agreement and based on an additional clause which is an integral part of the policy, the INSURER can also cover:

  • damages caused by the penetration of water into the building due to defects in the roof, walls, or windows, as well as due to defects in the drainage system of basements (water hydraulic confinement);
  • expenses for remuneration of technicians monitoring the site.


The insurance coverage is provided after the completion of the construction work on the building and issuance of the relevant permits to use it, for each sudden and unexpected loss due to an internal defect of the project, materials, or construction work, up to the limit of the insurance amount specified in the policy. The INSURER will pay to the INSURED an amount equal to the losses or, at his discretion, will compensate him by an exchange or rebuilding of the object.

The insurance coverage under this section begins from the issue date of the respective building’s Permit to use. If the property consists of more buildings, the beginning of the insurance for each one of them should coincide with the issue date of the relevant permit.

The insurance is contracted for a period of 10 years based on a written Application-questionnaire by the INSURED and a Permit to use the building submitted to the INSURER.

The insurance amount is determined based on the full amount for the re-construction of the building.

The damages are determined by an inspection and description by representatives of the INSURER in the presence of the INSURED or his representative. When experts are employed, the expenses incurred shall be borne by the INSURER.