Egypt Building Law mandates insurance for specific construction projects

Under Building Law No. 119 of 2008, property owners in Egypt are required to obtain valid insurance policies before issuing building permits or commencing construction. This measure serves as a precaution to protect citizens from potential damages resulting from the total or partial collapse of buildings.

Mandatory insurance is required for projects valued at one million Egyptian pounds or more, buildings consisting of four or more floors, or any vertical expansion works regardless of value. An exception is made for single-story vertical expansions not exceeding 200,000 Egyptian pounds, provided they meet approved planning and building specifications.

The insurance policy covers the civil liability of engineers and contractors for damages caused to third parties during construction or within the warranty period. Insurance companies are granted the right to review engineering drawings and monitor work execution.

Compensation is capped at two million Egyptian pounds per accident, with a maximum of 100,000 Egyptian pounds per person. The insurance premium must not exceed 0.2% of the building's value. If insurance coverage ceases for any reason, construction must stop immediately until coverage is reinstated.