What to do if your insurer refuses to cover your construction project

You've put your project together, signed the quotes, set the wheels in motion… and the insurer turns down your structural damage insurance application. This situation, far more common than people think, is as stressful as it is unexpected. Fortunately, several levers exist to break the deadlock.

Why might an insurer refuse?

The reasons for a refusal almost always relate to the risk perceived by the insurance company. The most common grounds:

1. A project profile judged too risky

major renovation of an older building without a thorough technical study;
partial or total self-building;
a site in a high-risk area (clay soils, seismic risk, landslides);
unconventional building techniques (straw, cob, shipping containers);
work already started without cover having been taken out first.

2. The constructors' profile

recently established firms (less than 2 years trading);
craftsmen with a high claims record;
ten-year cover missing or incomplete on certain trades;
absence of recognised professional qualifications (Qualibat, RGE…).

3. The client's profile

significant claims history;
previous cancellation of a DO policy;
multiple previous refusals (the AGIRA database archives such records).

4. An insufficient technical file

an overly cursory technical specification;
absence of plans or soil studies;
inconsistencies between quotes and plans;
absence of the constructors' ten-year cover certificates.

Step 1: analyse the reasons for the refusal

Before taking any action, ask the insurer for the precise grounds for its refusal, in writing. These grounds shape your strategy:

if the refusal concerns the constructors' profile, you can replace them or strengthen your team;
if it concerns the soil or the building technique, a further study can remove the difficulty;
if it concerns your personal profile, you will need to demonstrate that the risk is under control;
if it is general or barely justified, it is often a "commercial" refusal with no solid objective basis — this is precisely where referral to the BCT comes into its own.

Step 2: rework the file

Many refusals can be overturned with a better-prepared file:

A complete G2 PRO soil study (NF P94-500 standard), which reassures on the stability of the ground.
An exhaustive technical specification including plans, works specification (CCTP) and justified technical choices.
Up-to-date ten-year cover certificates for each constructor, with the activities covered.
A thermal study and any further studies appropriate to the nature of the project.
A clear reference to a project manager or architect (this reassures the insurer).

A solid file, presented by a broker who knows each company's requirements, often turns a refusal into an acceptance on normal market terms.

Step 3: widen the competition

Not all insurers have the same appetite for risk. The main categories:

the generalist companies (Allianz, Generali, AXA, etc.): selective, but competitive on good files;
the specialist mutual insurers (SMABTP, MAF): highly technical, demanding on the quality of the file;
the DO specialists: more open to unusual files, but higher premiums;
the Lloyd's brokers or foreign companies: last-resort solutions, high premiums but flexible.

Step 4: refer the matter to the Central Pricing Board (BCT)

If, despite all your efforts, you face several refusals, you have a powerful recourse: the Central Pricing Board (Bureau Central de Tarification, BCT).

What is the BCT?

It is an independent administrative body whose role is to impose cover where insurance is compulsory. This is notably the case for:

motor insurance;
structural damage insurance (Dommage Ouvrage);
ten-year structural cover;
natural-disaster insurance.

How to refer to it?

To refer a DO refusal to the BCT:

Send a written application to an insurer, by recorded delivery, with a complete file.
Obtain a formal refusal, or no reply after 45 days (treated as a refusal).
Refer the matter to the BCT within 15 days of the refusal, by recorded delivery to its secretariat (based at the ACPR, the French insurance regulator).
Attach all the documents: the refusal, the complete technical file, ten-year cover certificates, etc.

What the BCT can do

The BCT examines your file and, if it considers the application legitimate:

designates the insurer that will be required to cover you;
sets the premium the policyholder must pay;
determines any special conditions (excess, limited exclusions).

The decision is binding on the insurer. It is a powerful tool, but one that results in less favourable terms than a freely negotiated policy (higher premiums, heavier excesses).

Step 5: adjust the project

If all the usual avenues fail, it may make sense to review the project itself:

reduce the amount of self-building in favour of insured professionals;
change a constructor whose profile is too risky;
strengthen the technical choices (structure, foundations);
split the project into phases that can be insured separately;
postpone the work while bringing things up to standard.

An experienced broker can advise on precise technical trade-offs to make the project insurable.

Mistakes to avoid

To avoid making the situation worse:

do not start work before you have found an insurer (DO must be taken out before work begins);
do not hide a refusal in a new application: transparency is rewarded more than concealment (and your history eventually comes to light);
do not accept the first "accommodating" proposal on unacceptable terms without having explored the BCT route;
do not overlook the risk of consequences on resale if you decide to build without DO.

How long do these steps take?

As a rough guide:

putting insurers in competition via a broker: 2 to 4 weeks to obtain quotes;
technical reworking of the file: 4 to 8 weeks depending on the studies needed;
BCT procedure: 2 to 4 months between referral and decision.

So allow plenty of time when taking out your DO — ideally 3 to 6 months before work begins.

In summary

An insurer's refusal is never a dead end, but a signal to analyse.
Identify the grounds precisely and rework your file accordingly.
Approach several companies, ideally through a specialist broker.
The Central Pricing Board can compel an insurer to cover you.
Never start work without valid cover in place.

Need guidance?

Securing structural damage insurance on a complex file takes expertise and a network of insurers. Our team of brokers will guide you in choosing your structural damage insurance, even when the project is off the beaten track. Request a personalised quote or get in touch with an adviser.