Non-material damages in construction: definition and coverage

The essential thing to remember

The contractual definition takes precedence. If the insurance policy defines the non-material damages as "Any economic harm" I'm sorry, but "ou" does not have a meaning in English. It may be a typo or an incomplete word. "any financial loss" Therefore, the following list ("such as...") is illustrative, not exhaustive (Court of Appeal of Bordeaux, June 17, 2025, Case No. 23/00690).

Enjoyment prejudice: financial or moral?

The genes or non-quantified discomforts are not uncovered/not covered by a clause aiming "any financial loss" (Court of Appeal of Aix-en-Provence, April 4, 2025, Case Number 20/04117)

On the other hand, the actual and justified expenses (rehousing, moving, storage facilities...) are indemnifiable Subject to being proven by invoices. Several decisions confirm this requirement of accounting proof and often a link with guaranteed material damage:

• Rennes, November 10, 2016: Ancillary costs are reimbursable through the insurance policy, but moral damages are excluded.
• CA Bordeaux, September 26, 2019: Only economic damages resulting from material damages are covered; estimates alone are not sufficient.
• CA Paris, March 19, 2014: If the property remains habitable, the disturbance of enjoyment is considered moral and therefore not compensable.
• CA Bordeaux, December 28, 2010: Confirm that the non-quantifiable loss of enjoyment is not guaranteed.
• CA Bastia, September 25, 2024: The loss of use of a pool without proven financial loss is not compensable.

DO/RCD : What are the limits for incidental expenses?

The standard clauses (Article A.243-1, Annexes I and II of the Insurance Code) cover repair work. Additional costs are only covered if they are necessary and incidental to these works (e.g. demolition), but not if they are related to operation (e.g. security guards).

Mandatory insurance & optional limit

• The mandatory ten-year guarantee (RCD) only covers material damages (CA Paris, March 8, 2023, RG 21/07545).
• In DO, non-material damages are subject to a contractual ceiling when they are covered (Cass. 3rd civ., 5 Oct. 2022, No. 21-18.960).
• It's at The RCD insurer to produce their contract to prove the absence of immaterial guarantee (Court of Cassation, 3rd Civil Chamber, March 2, 2022, No. 20-22.486), and for the judge to verify if the guarantee is subject to a decennial material damage (Court of Cassation, 3rd Civil Chamber, March 2, 2022, No. 21-10.155).

Mandatory insurance vs. optional coverage (limits & proof)

RCD mandatory: only covers material damages (CA Paris, March 8, 2023).

Optional intangible assets: Subject to a contractual ceiling (Court of Cassation, 3rd Civil Chamber, October 5, 2022).

Burden of proof:

• To the RCD insurer to produce the policy to prove the absence of intangible guarantee (Cass. 3rd civ., March 2, 2022, n° 20-22.486).
• The judge must verify if the immaterial guarantee is conditioned on a material decennial damage (Cass. 3rd civ., March 2, 2022, No. 21-10.155).

Insured/victim side: It is necessary to provide paid invoices, not just quotes, and demonstrate the causal link with the guaranteed damage (Court of Appeal of Bordeaux, September 26, 2019).