On October 2019, the Financial Superintendence issued the
instructions that allow the insurance companies to start placing
the Inherent Defects Insurance (IDI) policies, named in Colombia as
'Seguro Decenal'. This insurance is one of the authorized
mechanisms by the Law 1796/2016 to cover the eventual damages that
might be caused to the homeowners when the buildings collapse or
threaten ruin during the first ten (10) years after the end of the
construction period.
In accordance with the mentioned law, the IDI was subsequently
regulated by the Government through the Decree 282 of 2019 as a
property insurance, operating under an occurrence modality, where
the premium must be paid by the construction companies and the
insurance contract cannot be revoked by any party. For this type of
policy, the insurer is obliged to stipulate that any coverage
issues (defences) that could be alleged against the construction
companies (policyholders) won't be used against
