Key points
- Hidden defects insurance is mandatory for contractors of residential and commercial buildings (except government), for 10 years from completion and issue of the occupancy certificate.
- It covers structural defects and resulting damage, plus items including waterproofing of external surfaces; ask for the policy number and keep a copy.
- Inspect in daylight with water, power and AC actually running, and record every issue with a photo and location before signing.
- Request as-built drawings, photos of services before they were closed up, and written warranties for equipment and materials.
Written for:OwnerContractor
Handover is the last easy chance to have mistakes fixed at the builder's cost. Once you sign and move in, proving a defect was already there gets harder. This guide is a practical checklist to take with you, plus what we found in official sources about hidden defects insurance.
Note: the checklist here is practical advice, not regulation, and does not replace an engineer or accredited inspection body for large buildings or when the structure is in doubt.
1) Hidden defects insurance: what to know before handover
According to the Insurance Authority1:
- The insurance is mandatory for contractors of residential and commercial buildings, excluding government buildings, and a building permit is not issued without the policy.
- Coverage lasts 10 years from completion of construction and issue of the occupancy certificate.
- It covers defects arising in the building's structural frame and resulting damage to other parts of the building; the main basic covers listed also include faulty-design defects not detected during construction, waterproofing of external surfaces, and errors in materials, soil investigation or workmanship.
Practical tip: ask the developer or contractor for the policy number and insurer name, and keep a copy with the occupancy certificate. The policy's own terms and exclusions are the reference.
2) Documents to request
- Occupancy certificate and building permit.
- Hidden defects insurance policy.
- As-built drawings (architectural, structural, electrical, plumbing, HVAC), or at least the routes of concealed services.
- Photos of services before walls and ceilings were closed, if available. See the renovation checklist.
- Written warranties: waterproofing, AC units, water heaters, pumps, doors and windows, with contact numbers.
- Equipment manuals, and keys for electrical panels and meters.
3) How to inspect
- Inspect in daylight, with a torch, spirit level, tape measure, a simple socket tester and a phone for photos.
- Run everything: open every tap for several minutes, run the AC units, heaters and exhaust fans, and try every switch and socket.
- Record every issue as photo + location + description in one list, and ask the builder to sign it with a repair date.
- Do not sign a "final handover" with the list still open; it is clearer to write "handover with snags" and attach the list.
4) Checklist by item
| Item | What to check | Details |
|---|---|---|
| Water and plumbing | Pressure, leaks under basins and around mixers, drains empty quickly with no odours, toilets firmly fixed | leak detection, plumbing problems |
| Bathrooms and kitchen | Floor falls to the drain (pour water and watch), silicone around basins and bath, grout | waterproofing under tiles |
| Electrical | Every socket works, press the RCD Test button, circuits labelled in the panel, switches not warm | breakers and RCDs |
| Air conditioning | Cooling in every room, condensate drains to a proper place, no indoor dripping | AC problems |
| Tiles | Tap lightly for hollow sounds, flatness, joints, cracks and chips | tile problems |
| Walls and paint | Cracks, damp patches, peeling, obvious waviness under side lighting | damp walls, paint problems |
| Doors and windows | Opening, closing and locks, window seals, drainage slots in sliding windows | window problems |
| Roof | Roof falls and rain outlets, condition of visible waterproofing, ponding after spraying water | roof waterproofing |
| Water tanks | Cleanliness, tight cover, ventilation, no leaks around the tank | water tanks |
| Concrete and structure | Cracks in columns or beams, or diagonal or widening cracks: get an engineer's opinion before handover | concrete cracks |
| Yard and entrances | Yard falls away from walls, settled pavers, water ponding at thresholds | yards and interlock |
5) After handover
- Keep all documents in one file (paper and digital): drawings, warranties, insurance, the snag list and what was fixed.
- Note warranty expiry dates, and inspect the house again before the contractor's warranty ends.
- If a defect appears later: photograph it immediately, stop the source of damage if you can (such as the water valve), and contact the contractor or insurer in writing.
Sources
The number next to a statement points to its source in this list. Sources back the general information; anything marked “practical advice” is editorial experience, not a quoted source. Anything that affects safety, structural design or electrical installations needs a licensed professional, and in Saudi Arabia the binding reference is the Saudi Building Code.
- 1Mandatory hidden defects insurance — Insurance Authority (Saudi Arabia)
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This guide is for general information and planning, based on standards and technical guides. Standards are revised periodically; in Saudi Arabia the binding reference is the Saudi Building Code and the instructions of the competent authorities. For design and execution, use a licensed engineer or technician. Found an error? Tell us.