Saudi Arabia – Real estate developers to secure decennial insurance
Friday, 02 12 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
In a move aiming at preserving the quality of constructions, financing companies compelled real estate developers either to secure a comprehensive decennial liability insurance for any property sold or to pay a financial guarantee for the same period in order to cover maintenance and cracks that could occur during the first years of use.
The real estate financing official told “Makkah Newspaper” that this allows the consumer to buy the property for cash or through installments. This will reinforce the confidence of the customer and the financing entity. Therefore, the option given to real estate developers is either decennial liability insurance or an approximate amount for the same period in order to register the property and market it through real estate financing.
Source: Makkah Newspaper