Compulsory insurance for residential buildings Cutting down on manipulators

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4 organizations start inspections on the implementation of the Saudi Building Code

4 organizations start inspections on the implementation of the Saudi Building Code

After the mandatory insurance for residential buildings in the Kingdom, consisting of three floors and below, came into effect last Thursday to cover construction defects, and with the policy term set at 10 years, there will no longer be room for manipulation of construction works, and the issue of ”burying” and “cracks” that occur due to the removal of "scaffolding" by contractors before the scheduled date in order to want to complete the construction quickly will end.

It was decided that owners of residential buildings consisting of three floors and less will be required to issue an insurance policy to insure buildings against hidden defects, and the policy will be for 10 years and cover defects in construction works and other elements that weaken the strength and stability of buildings; the insurance will cover soil and construction inspection, and the policy requires that the defects are not discovered at the date of issuing the certificate.

The policy will cover hidden defects.

4 Inspection Organizations

4 entities are conducting inspections on the implementation of the Saudi Building Code by contractors, led by the Ministry of Municipal and Rural Affairs and Housing through the approved electronic platform "Baladi".

Implementation of the building code will be mandatory

The implementation of compulsory insurance for residential buildings began in July, according to statements made by the Secretary General of the National Committee for the Saudi Building Code, Engineer Saad Al-Sha'il, and Dr. Hassan bin Shawki Al-Hazmi, General Supervisor of the Land and Technical Affairs Agency at the Ministry of Municipal, Rural Affairs and Housing; the insured will be compensated for the costs of repair, replacement and reinforcement of buildings resulting from hidden defects that are discovered and reported by the company during the insurance coverage period, stressing that the implementation of the building code will be compulsory by the Ministry of Municipal, Rural Affairs and Housing.

800 licensed engineering offices

Afterwards, a requirement will be added to select a contractor registered and approved by the Saudi Contractors Authority, and the cost of Specified Residential Building Insurance will be 1.5% of the construction cost of the building.5% of the cost of building construction, and there will be no room for manipulation, whether on the part of insurance companies, engineers, contractors and insurance brokerage companies; pointing out that the number of offices licensed to provide services for the new construction models on the Baladi platform reaches about 800 engineering offices, and the number of engineering offices and accredited contractors increased to 2800 offices; with the aim of activating the application of the residential building code in all regions of Saudi Arabia

Family security for 10 years

The person who applies for the building license is not the citizen, but the engineering office in solidarity with the supervising office and the implementing contractor on the safety of the facility for 10 years; the mandatory insurance is an economic value for the building, increasing its durability and sustainability, and achieving security for the family who will live in this house for at least 10 years against not facing the issues of building defects that we see in clips through communication media and loss of responsibility.