Understanding Inherent Defects Insurance (IDI) for New Homes in KS
"When buying a new home in Saudi Arabia, the excitement should not be overshadowed by worries about structural integrity. This is where IDI becomes your ultimate safeguard."
In alignment with the Saudi Building Code, the Inherent Defects Insurance (IDI) is now a mandatory requirement for all non-governmental residential and commercial buildings. This policy ensures that the dream of owning a home doesn't turn into a maintenance
nightmare
1. What is Inherent Defects Insurance (IDI)?
IDI is a mandatory insurance policy that contractors must obtain before starting a project. It
covers structural defects in the building that might appear after construction is completed.
You can also check: Real Estate Insurance in Saudi Arabia 2026: The Ultimate Guide to Protecting Your Property
2. Key Features of the Policy
• Duration: The coverage lasts for 10 years from the date of the completion certificate.
• Coverage: It covers major structural elements such as foundations, columns, slabs, and walls, as well as waterproofing and mechanical/electrical issues related to structural safety.
• Mandatory: No building completion certificate is issued by the municipality without
proof of this insurance.
3. Why it Matters for Homeowners in 2026
If you purchase a villa or an apartment built after 2020, you are legally entitled to this protection. If a crack appears in a load-bearing wall or the foundation sinks, the insurance company—not the owner—bears the cost of repairs.
IDI Coverage Summary Table
| Aspect | Details |
|---|---|
| Policy Duration | 10 Years (Non-renewable) |
| Main Coverage | Structural integrity and safety-related defects |
| Mandated By | Saudi Ministry of Municipal and Rural Affairs |
| Transferability | Automatically transfers to the new owner if the property is sold |