Product Overview
Inherent Defects Insurance is a mandatory insurance policy for contractors of residential and commercial buildings (excluding government buildings). It is a prerequisite for obtaining a building permit and aims to protect the owner and end user against hidden defects in the structural elements of the building, which may appear after the project is completed.
Coverage Includes
- Structural defects and the resulting damage to other parts of the building
- Defects resulting from faulty design that were not detected during the construction phase
- Waterproofing of the building's exterior surfaces
- Errors, failures, or deficiencies in materials, soil testing, or construction
Target Beneficiaries
- Property Owners: To ensure the safety of their assets and sustained building quality
- Contractors: To demonstrate compliance with the Saudi Building Code and meet licensing requirements
- Regulatory Authorities: To strengthen oversight and ensure the quality of new constructions
- Real Estate Developers: To protect their investments and enhance trust in their projects
- Additional Information
- Coverage Duration: 10 years, starting from the completion date of the construction and issuance of the occupancy certificate
- Policy Requirement: Building permits cannot be issued without obtaining the insurance policy
- Technical Inspector: An independent party appointed by the insurance company to monitor construction quality and verify compliance with the building code
- Payment Process: The insurance premium is paid in two installments over the policy period
Pool Leadership and Operating Process
Lead Insurer: Tawuniya Insurance Company
Participating Insurers (17 Companies):
- Tawuniya Insurance Co.
- Malath Cooperative Insurance Co.
- Al-Etihad Cooperative Insurance Co.
- Gulf Insurance Group
- Arabian Shield Cooperative Insurance Co.
- Walaa Cooperative Insurance Co.
- Al Sagr Cooperative Insurance Co.
- Aljazira Takaful Taawuni Co.
- Arabia Insurance Cooperative Company
- Saudi Arabian Cooperative Insurance Company (SAICO)
- Buruj Cooperative Insurance Co.
- Salama Cooperative Insurance Co.
- Wataniya Insurance Company
- Gulf Union AlAhlia Cooperative Insurance Co.
- Mutakamela Insurance Company
- Amana Cooperative Insurance Co.
- Al Rajhi Insurance Co.