SBI General to launch ‘inherent defects’ policy
SBI Generalinsurance company will be the second general insurer in the country to introduce an ‘inherent defects’ insurance policy for real estate developers, after HDFC Ergo launched their product last November.
Under the new Real Estate Regulation and Development Act (RERA), 2016, builders are liable to pay for any structural flaws in their buildings which are detected within five years, from the date of purchase of the property.
While traditional insurance policies for property or residences cover damage or loss caused by fire, the different in the ‘inherent defects’ policy will cover issues discovered because of poor workmanship, structural defects for example.
It will provide the builder with protection against cost of repairing, restoring and or strengthening the building if there is damage caused by inherent structural problems.