Business & Money | Monday 17 February, 2020 3:15 pm |

The latest economic research in the constructions sector revealed that the Kingdom of Saudi Arabia is ahead of the States of Arab Gulf countries, and ranked first, where the construction projects exceeded a total of 6 trillion Saudi Riyals last year. They served infrastructure, commercial and residential sectors.

Saudi Arabia is witnessing an accelerated urban renaissance that aligns the kingdom's ambitious Saudi Vision 2030 that aims to revive the construction sector benefiting from economic diversification, social reforms, and people’s demand, as well as government projects. This solid national plan assures the strength and the durability of the Saudi economy. 

In response to the construction market needs for insurance protection for both owners and developers, Malath Cooperative Insurance Company studied the optimal product to provide coverage for damages caused by hidden defects that may arise after the completion of construction work.

For the first time in Saudi Arabia, Malath Cooperative Insurance Company has launched an appropriate insurance product that meets the needs of both the real estate developer and/or contractor. This insurance provides protection for the real estate developer or the owner of the building against damages caused by any hidden defects, which may appear after the completion of the construction works. The insurance product will grant tranquility and peace of mind to the clients, and promotes the marketing of the project under the guarantee of an insurance policy officially approved by the legislatures specifically for the property/building even if its ownership is transferred to another party. 

“Our new product is innovative insurance solution that suits the needs of the construction market, and it has unique characteristics, covering the structural framework of the residential real estate unit in accordance to specific criteria, in addition to examination of the construction unit from the beginning of the construction process by certified examiners until the completion of the work for at least five years and insurance coverage of the structural framework can be extended up to ten years.” said the managing director and Chief Executive Officer of Malath Cooperative Insurance Company, Mr. Fawaz Al Hijji.

Mr. Fawaz Al Hijji clarified that insurance coverage can be upgraded to cover basic electromechanical works and water insulation, and may include insurance coverage on the final finishes of the residential real estate unit according to the terms of the policy.

The construction warranty insurance policy is an ideal solution for the real estate developer, contractor and owner of the Property unit to ensure that the construction works are carried out in a professional and officially approved manner.