The start of the implementation of the mandatory insurance decision for housing consisting of three floors and less, enhances confidence and accelerates governance and regulation in the sector, and we are optimistic after the decision came into effect from the beginning of this month, and we expect the positive impact on the real estate market in general, and on the sustainability of residential buildings in particular.
One of the most prominent benefits that the beneficiary will reap, starting with insurance companies that will not accept insurance for a product or service without quality requirements and complete specifications, whether in the design, supervision or implementation stages, as structural defects in new buildings may not appear during the first years of the building's life, but later cause serious damage that incurs heavy losses to the owner, exceeding the cost of construction.<The mandatory insurance will guarantee the buyer of the property the quality of the building and its conformity to the standards, regardless of the succession of buyers, and the mandatory insurance will force companies to take into account the quality conditions that will directly contribute to extending the life of the building, and the exit of unprofessional contractors and non-compliance with quality and requirements from the market, and the survival of the best, which creates competition to provide quality products suitable for the owners.

The decision will guarantee consumer rights, reduce maintenance expenses that may occur in buildings, and compensate the buyer in the event of non-compliance with the Saudi code during implementation, or failure to use quality materials and conform to specifications.

After the decision comes into effect, we expect competitive offers for insurance policies in exchange for the sustainability of buildings and minimizing risks to achieve the goal for which the building was built, and we will witness a new insurance market in which competition increases.
In our estimation, the duration of the announced policy, which covers a period of 10 years, we hope to increase it for a longer period, because the building is a durable product that lasts for tens of years and hidden eyes may appear after these years, while reducing the value of insurance as the age of the building increases and so on.
We expect that these laws in their entirety will lead to improving the real estate and contracting market, ensuring competition and raising quality, thus ensuring the survival of the best, especially if combined with control mechanisms that will increase transparency and limit low-quality buildings, which will create a more reliable and sustainable market.

We expect these laws to be accompanied by control mechanisms that will increase the level of transparency and limit low-quality buildings, which will create a more reliable and sustainable market.