The 5 major risks of building without Dommage Ouvrage insurance

Skipping Dommage Ouvrage (structural damage) insurance to save a few thousand euros: the temptation is real, especially for a private individual who faces no criminal penalty. And yet the consequences of having no DO insurance can turn a life project into a lasting financial nightmare.

Risk #1: having to advance 100% of the repair costs

This is the most immediate risk. If a defect covered by the décennale (ten-year structural warranty) occurs — a structural crack, serious water ingress, a waterproofing failure, subsidence — you will have to:

pay for emergency works and repairs immediately;
often mobilise tens of thousands of euros at no notice;
wait several years for any possible reimbursement from the builder or their insurer.

With DO insurance, the insurer pre-funds the works: it compensates you first, then pursues the party responsible. Without DO insurance, you face the expense alone.

Risk #2: years of court proceedings

Without DO insurance, obtaining compensation means proving the builder's liability, which generally involves:

a formal notice (mise en demeure) to the builder;
a court-appointed expert survey (on average 6 to 12 months);
a court summons (assignation);
a judgment (a further 12 to 24 months);
any appeals (appeal court, Court of Cassation).

In total: 2 to 5 years to enforce your rights. Meanwhile, the defect can worsen, the property can become uninhabitable, and your financial situation can deteriorate.

Risk #3: the builder disappearing

This is one of the most frequent — and most devastating — scenarios. Three or five years after the works finish, you discover a defect. When you go looking for the builder:

the company has been wound up (liquidated);
it has changed legal form;
its décennale insurance was not renewed;
the director has vanished or now trades under a different name.

Without DO insurance, you have no one left to turn to. Construction-sector figures show that around 30% of building firms disappear within 5 years of being set up. The risk is anything but theoretical.

With DO insurance, it makes no difference whether the builder still exists: your insurer pays, and it is the insurer that then handles the recovery.

Risk #4: a collapse in value on resale

This is the most underestimated risk. The law requires the notaire (public notary) to state in the deed of sale whether or not Dommage Ouvrage insurance exists, for any property resold within the 10 years following completion of the works.

Practical consequences:

the buyer, duly informed, systematically negotiates the price down (often -10 to -20%);
the buyer may withdraw or refuse to sign;
you remain liable for defects towards successive buyers for 10 years;
if a defect is discovered after the sale, the buyer can sue you for latent defects or non-conformity.

Explore in depth the impact of a resale without DO insurance.

Risk #5: the buyer being refused a mortgage

A direct consequence of the previous risk: more and more banks refuse to grant a mortgage for the purchase of a property built or renovated within the previous 10 years without Dommage Ouvrage insurance.

The reasons are straightforward:

the bank takes a charge over the property, whose value can plummet if a defect appears;
if the borrower defaults, the bank needs to be able to resell on good terms;
the regulatory and reputational pressure on banks has tightened in recent years.

The result: your property becomes potentially unsellable at market price, or restricted to the rare cash buyers.

The cumulative effect: a systemic risk

Taken in isolation, each risk is already serious. But they often stack up:

A defect appears → you start proceedings;
The builder has disappeared → you pay alone;
You decide to sell → the value has dropped;
The buyer cannot obtain their loan → the sale falls through;
You discover a new defect… → the spiral continues.

This is why the premium for Dommage Ouvrage insurance — generally between 1 and 5% of the works budget — is almost always paid back by a single claim avoided.

What to do if you have started without DO insurance?

Several options depending on your situation:

Before handover of the works: some insurers still accept a retroactive application, with an audit of the site and a surcharge.
After handover: taking out cover becomes almost impossible, but a prior survey can document the condition of the property.
If a resale is coming up: provide for a clear clause in the deed and a negotiated price reduction, in agreement with the notaire.

In every case, get support from a specialist broker and from your notaire to limit the consequences.

In summary

Without DO insurance, you advance 100% of the costs in the event of a claim, with no certainty of recovering them.
Court proceedings last on average 2 to 5 years.
If the builder disappears, you have no effective recourse left.
The property's resale value can drop by 10-20% for 10 years.
Banks are increasingly refusing to finance the purchase of a property without DO insurance.

Need some guidance?

Anticipating these risks means protecting your assets and your peace of mind. Our team of brokers will support you in choosing your Dommage Ouvrage insurance by tailoring the cover to the nature and scale of your works. Request a personalised quote or get in touch with an adviser.