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Colombia‘s Mandatory Decenal Insurance Protects New Home Buyers
Table of Contents
- Colombia’s Mandatory Decenal Insurance Protects New Home Buyers
- Who is Responsible for Decenal Insurance?
- Expansion of Decenal Insurance Coverage
- Key Statistics on Insured Housing Projects
- Who Pays for Decenal Insurance?
- Crucial Details About decenal Insurance
- Understanding the Evolution of Housing Insurance in Colombia
- Frequently Asked Questions About Decenal Insurance
Starting July 1, 2025, Colombia has officially mandated decenal insurance, often called “Anti-Space” insurance, to safeguard individuals purchasing new homes. This policy protects buyers from critically important structural damages that may arise within the first decade following the property’s delivery. Fasecolda confirmed the nationwide implementation in a statement released this July.
Who is Responsible for Decenal Insurance?
Construction firms that develop and market infrastructure projects are responsible for acquiring this insurance. The decenal insurance policy stems from the Safe Housing Law (Law 1796 of 2016), enacted following the space building collapse in Medellín. Its implementation has been phased in across Colombia’s major urban centers.
Expansion of Decenal Insurance Coverage
the mandatory implementation began on January 1, 2022, in Bogotá, Medellín, and 33 neighboring municipalities. It later expanded to Barranquilla, Bucaramanga, cali, Cartagena, Cúcuta, and 36 adjacent municipalities starting July 1, 2024.
Did You Know? The “Anti-Space” insurance name comes from the tragic collapse of the Space building in Medellín, which prompted the creation of the Safe Housing Law.
Gustavo Morales, executive president of Fasecolda, stated that decenal insurance represents a significant stride towards a culture of construction prevention. He emphasized that this insurance not only shields the buyer but also incentivizes builders to adhere to the highest technical and structural standards.
As of May 2025, 522 projects, encompassing approximately 81,355 residential units, have been secured under this policy. These include 51,752 units of Social Interest Housing (VIS), 25,228 non-VIS units, and 4,375 units of Priority Social Interest Housing (VIP), with a total insured value exceeding $12.4 billion pesos, according to fasecolda data.
Over the next two years, the launch of 1,064 new projects is anticipated, adding 187,885 additional housing units to the market, all of which must comply with this insurance requirement.
Pro Tip: When buying a new home in Colombia, always ask the developer for proof of decenal insurance coverage.
Key Statistics on Insured Housing Projects
| Housing Type | Number of Units (May 2025) |
|---|---|
| Social Interest housing (VIS) | 51,752 |
| No VIS | 25,228 |
| Priority Social Interest housing (VIP) | 4,375 |
| Total Insured Value | $12.4 Billion Pesos |
The estimated average price for these new units is $311 million pesos, with an average area of 67.9 m². Morales notes that these statistics highlight the construction sector’s scope and its impact on Colombian families seeking homeownership. He added that mechanisms like decenal insurance are crucial for safeguarding buyers by ensuring the structural quality of buildings.
Who Pays for Decenal Insurance?
Fasecolda clarifies that the obligation to secure this insurance does not apply uniformly to all projects. It depends on the filing date of the corresponding construction license, as stipulated by Decree 1617 of 2023.
Currently, eight insurance companies offer decenal insurance: Solidarity Insurer, Axa colpatria, World Insurance, SBS, Insurance Alfa, Bolívar, Predict, and Sura.
The Colombian housing market is experiencing growth, with Camacol reporting approximately 1,725 housing projects under progress nationwide, representing a total of 349,068 housing units, each with an average value of $292 million pesos.
Crucial Details About decenal Insurance
- The policy exclusively covers new housing, irrespective of whether it is Social Interest Housing (VIS), No VIS, or Priority Social Interest Housing (VIP).
- Coverage lasts for ten years following the issuance of the Technical Occupation Certificate (CTO), meaning the property is protected from day one of delivery.
- The builder or promoter of the project must acquire the policy.
- The insurance cannot be canceled or modified during its validity.
- Eligible homes must be under the horizontal property regime, be closed real estate units, individual lots, or any system, including mixed-use projects, generating five or more housing units.
- Buyers can verify decenal insurance coverage via the Single Insurance Registry – Rus at www.rus.com.co.
Understanding the Evolution of Housing Insurance in Colombia
The introduction of mandatory decenal insurance marks a significant shift in Colombia’s approach to housing consumer protection. Historically, buyers bore the brunt of structural defects discovered after purchase. The Safe Housing Law and subsequent decenal insurance mandate aim to distribute risk more equitably, incentivizing higher construction standards and providing recourse for homeowners facing costly repairs due to structural failures. This move aligns Colombia with international best practices in construction and consumer rights.
Frequently Asked Questions About Decenal Insurance
What exactly does decenal insurance cover?
Decenal insurance primarily covers structural damages that compromise the stability and safety of a building. This includes issues like foundation problems
