Frequently Asked Questions
Common Questions About Construction Insurance in Argentina
Answers to questions that collective real estate investors frequently ask about the insurance instruments in Argentine construction projects.
About Insurance Requirements
Is construction insurance really mandatory for all projects in Argentina?
Yes. Argentine law establishes several mandatory insurance obligations for construction projects. The seguro de obra (construction all-risk insurance) is required for projects above certain thresholds and as a condition of municipal building permits in most jurisdictions. ART coverage under Law 24.557 is mandatory for all registered workers. Mandatory life insurance applies to construction sector employees. The civil liability policy is required by many municipalities and by standard construction contracts. The specific requirements can vary by province and municipality, which is why verifying compliance at the project level is important.
Who is responsible for obtaining and maintaining construction insurance — the developer or the construction company?
This depends on the contractual structure of each project. In many Argentine construction projects, the developer (comitente) is responsible for obtaining the obra insurance, while the construction company (empresa constructora) is responsible for the civil liability policy and ART coverage for its workers. In some projects, the construction company takes out all policies. The key point for investors is to verify — through documentation — who holds each policy, whether it is current, and whether the coverage limits are adequate for the project's value.
Can I as an investor be named as a beneficiary on the construction insurance policy?
In most collective investment structures in Argentina — particularly fideicomisos (trusts) — the fiduciario (trustee) is the named insured or beneficiary, acting on behalf of the fideicomisarios (beneficiaries, i.e., the investors). In direct purchase agreements, the developer is typically the named insured. Individual investors are rarely named directly on construction-phase policies. Understanding who holds the policy and how insurance proceeds would flow in the event of a claim is one of the key questions our guides address.
What is the SSN and why does it matter for construction insurance?
The SSN (Superintendencia de Seguros de la Nación) is Argentina's insurance regulatory authority. It authorizes and supervises all insurance companies operating in the country. For investors, the SSN matters because any insurer providing coverage for an Argentine construction project must be registered with and authorized by the SSN. You can verify an insurer's registration on the SSN's public registry. Policies issued by unregistered entities are not legally valid under Argentine law.
About Claims and Incidents
What happens when there is a structural incident during construction?
When a covered event occurs — such as fire, collapse, or storm damage — the insured party (typically the developer or construction company) must notify the insurer within the timeframe specified in the policy, usually 72 hours to 5 days depending on the policy conditions. The insurer then sends a loss adjuster (perito liquidador) to assess the damage. The adjuster's report determines the indemnification amount, subject to the policy's deductible and coverage limits. Investors in collective projects should ask their developer what the notification and claim process looks like and who is responsible for managing it.
Does a worker accident on the construction site affect my investment?
A worker accident on a properly insured and compliant construction site is managed through the ART system. The ART covers medical treatment, disability compensation, and death benefits for registered workers. However, if the construction company has unregistered workers or has allowed its ART coverage to lapse, the employer faces direct civil and criminal liability. This can result in legal proceedings that freeze project assets, delay construction, or affect the financial structure of the investment. Verifying ART compliance before and during a project is therefore relevant to investors, not just to employers.
What if the developer's insurance policy lapses during construction?
A lapsed insurance policy means the project is uninsured for the period of the lapse. Any incident occurring during that period would not be covered, leaving the developer — and potentially the investment structure — exposed to the full cost of the damage or liability. This is why investors should request periodic confirmation that policies are current and renewed, not just a certificate at the time of signing. Some investors include insurance maintenance obligations in their purchase agreements as a contractual condition.
About Post-Delivery Coverage
Does insurance coverage continue after the building is completed and delivered?
The construction-phase insurance (seguro de obra) typically terminates at practical completion or at the date specified in the policy. After delivery, coverage transitions to whatever post-sale or property insurance the owner or owners' association (consorcio) takes out. The statutory warranty under Argentine law — ten years for structural defects, one year for functional defects — is a legal obligation of the developer, not an insurance product. Some developers supplement this with a post-sale insurance policy, but this is not universally required. Clarifying the post-delivery insurance situation before taking possession is an important step.
What is the ten-year structural warranty under Argentine law?
Article 1273 of Argentina's Civil and Commercial Code establishes that the builder (constructor) is liable for structural defects that appear within ten years of completion. This applies to defects that affect the solidity of the structure or make the building uninhabitable. The warranty runs from the date of practical completion, not from the date of purchase. It is a statutory right that cannot be waived by contract. To exercise this right, the defect must be reported to the developer and, if unresolved, pursued through civil proceedings. Our post-sale guide covers this topic in detail.
Should the owners' association (consorcio) take out separate insurance after delivery?
Yes. Once a building is delivered and the consorcio (owners' association) is formed, the consorcio is responsible for obtaining and maintaining insurance for the common areas and structure of the building. Argentine horizontal property law requires this. The type and amount of coverage appropriate for a completed building differs from construction-phase insurance. This transition — from construction insurance to building insurance — is a step that is sometimes overlooked in collective investment projects, particularly when the handover process is complex.
About Molvune's Content
Is the information on this site legal or insurance advice?
No. All content published by Molvune is educational and informational in nature. It is not legal advice, insurance advice, or financial advice. Our guides explain how insurance instruments work in the context of Argentine construction projects and what questions investors might ask. For advice specific to your investment, project, or legal situation, you should consult a licensed attorney (abogado matriculado) or a licensed insurance advisor (productor asesor de seguros) registered with the SSN.
How often is the content on this site updated?
We review and update our guides periodically to reflect changes in Argentine law, SSN regulations, and construction industry practice. Regulatory changes in Argentina's insurance and construction sectors can be frequent, so we recommend checking the publication date of each guide and consulting current regulatory sources for the most up-to-date requirements. If you notice information that appears outdated, you can contact us through our contact page.