Form Selection And Suggestions For Residential Quality Insurance In China

Residential quality insurance, which is called also inherent defect insurance, latent defect insurance or decennial insurance in foreign countries, is an insurance system that can protect homeowners, and balance the rights and duties of related parties after turn over. This kind of insurance was set up in order to recover the defects of residence occurred during the consumption period. There are two major parts; one is defect insurance, the other one is liability insurance. There have been some tests of residential quality insurance in China since 2002, but most of them encountered difficulties. This paper will introduce the insurance system in foreign countries, analysis the situation of residential quality insurance in China, summarize the causes of problems, then discuss the most suitable form of insurance for China.In theory, the research result of this paper will provide the theoretical basis for the residential quality insurance in China, also the building safety management system. In practice, this paper will analysis the problems occurred in the tests of insurance in China, then provide some suggestions.Through theoretical study, this paper presents the theoretical framework of the residential quality insurance: one part is the inherent defect theory concerned about the defect insurance; the other one is liability insurance theory. According these two theories, this paper examines the insurance tested in China. With the game theory, this paper will set up a game model for residential quality insurance, and discuss the most suitable form for China.Current status of market, policy and technique has shown that residential quality insurance is feasible in China. Results of analysis to quality status have shown that the insurance is necessary. The game model set up by this paper gives the result that residential quality insurance will bring positive effects. But the practice in China is not optimistic. This paper points out that the insurance system does not pay much attention to liability insurance in China, which is different from the system abroad. Current residence status and the result of game model give the conclusion that the insurance system in China should take the form of alternative premium rate, compulsive insurance, and the combination of defect insurance and liability insurance.According the chosen form of insurance, this paper provides some suggestions. Firstly, establish the basis for residential quality insurance in China. Improve the operation ability of underwriter. Adjust the quality guarantee system for the need of insurance. Set up the technical inspection service for the risk evaluation to control. Secondly, establish the suitable residential quality insurance system. The insurance in China should contain both the defect insurance and the liability insurance, with the form of alternative premium rate, compulsive insurance. Thirdly, advance the research and practice for residential quality insurance. Extend the scope of practice. Use the data of defects and claims to check and advance the residential quality insurance in China.