Buildings insurance for condominiums: who is responsible for what?
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AT A GLANCE
A winter storm blows some tiles off the roof of your condominium. Who takes care of the repairs and who bears the costs? In condominium ownership, two worlds collide: the communal building and your personal apartment. We explain where the boundaries lie and what this means for your cover.
Who pays for damage to condominiums?
It isn’t always clear who is responsible and many coverage gaps only become apparent in the event of a loss. Our advisors check your current cover and explain how Allianz closes these gaps in a targeted manner.
What is condominium buildings insurance?
Buildings insurance covers your building against risks such as fire and natural hazard damage. It covers damage to buildings caused by fire, lightning, explosion, landslide, hail, flooding, avalanches, snow pressure, rockfall and storms, for example.
A special feature of condominium ownership is that the buyer also acquires co-ownership of the entire plot of land and building, in accordance with Article 712a of the Swiss Civil Code (ZGB). Buildings insurance is therefore a joint matter for the community of condominium owners, not the individual owners.
Is buildings insurance compulsory for condominiums?
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Category
|
Cantons (examples)
|
Rule
|
|
|---|---|---|---|
| Monopolistic cantonal insurance | Zurich (GVZ), Bern (GVB), Aargau (AGV), etc. (19 cantons) | Compulsory, only via cantonal insurance | |
| Compulsory, free choice | Uri, Schwyz, Obwalden, Appenzell Innerrhoden and the Principality of Liechtenstein | Mandatory, but can be taken out with a private insurer | |
| Voluntary | Geneva, Ticino, Valais |
Not mandatory, but strongly recommended by banks and out of self-interest
|
Why is buildings liability insurance for the community of condominium owners important?
Many condominium owners assume that their personal liability insurance is also sufficient for their condominium. However, since the building legally belongs to everyone, many losses between co-owners or to communal parts of the building are only covered to a limited extent as third-party claims. Personal liability insurance often does not cover such cases in full. A critical coverage gap arises, and this can quickly become expensive.
There is also the issue of joint liability: in the event of a defect in a communal building part, all the owners are liable jointly. If a guest slips on the icy forecourt or a rotten tree falls from the shared property onto a neighbouring property, the community of owners must pay for the loss.
Buildings liability insurance for the community of condominium owners closes this gap. Want to find out more? Our advisors will support you and your community of owners.
What is not covered by buildings insurance for the community of condominium owners?
The basic cover of the buildings insurance does not provide protection against all risks. Those that are not covered include:
- Earthquake
- Water damage, e.g. due to broken pipes or back-up
- Damage caused by rainwater and meltwater
Earthquake risk is a particularly complicated issue: the Swiss Pool for Earthquake Insurance (SPE) provides its members with a total of up to CHF 2 billion per event after a major earthquake, but only if the quake reaches intensity VII on the European Macroseismic Scale (EMS-98). What is more, this support is a voluntary service to which building owners have no legal entitlement.
Payment is limited to a maximum of CHF 100,000 per building, which is generally insufficient to cover the costs of reconstruction. According to the Association of Cantonal Building Insurers (VKG) (in German), the financial consequences of a strong earthquake would mean financial ruin for many homeowners.
Since cantonal buildings insurance does not include earthquake risk as standard, Allianz offers earthquake insurance – with this cover, communities of condominium owners do not end up with millions of dollars in losses if the worst comes to the worst.
Closing coverage gaps – request a quote now
Standard cover often does not include earthquakes or water damage. We put together your buildings insurance on a modular basis – that way, gaps like these can be closed with the right add-ons.
Who pays for which losses when it comes to condominiums?
The law determines who is responsible for which losses. A distinction is drawn between communal and personal property:
- The roof, façade, stairwell and communal pipes and wires are the responsibility of community of condominium owners.
- Interior fittings, flooring, interior walls and individual pipes and wires in the apartments are the personal responsibility of the owners.
It is precisely at the boundary between these two areas that disputes most frequently arise, often in combination with questions about personal liability insurance.
Joint versus private ownership
The following table shows which building parts normally belong to the community and which count as your private property.
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|
Joint ownership
(community responsible) |
Private property
(owner responsible) |
|---|---|
| Roof and façade | Flooring, including parquet |
| Stairwell and lift | Interior walls (non-load-bearing) |
| Load-bearing walls | Interior fittings and installations |
| Communal pipes and wires | Individual pipes and wires in your apartment |
| Forecourt and surroundings | Kitchen and bathroom |
Rule of thumb: the things you can change as you wish without impacting the building structure count as your private property.
How much does condominium buildings insurance cost?
The premium invoice is sent to the administration of the community of owners. This then divides the amount between all owners via the ancillary costs statement on the basis of the ratios defined in the land register (Article 712h ZGB). Owners of larger or more extensively developed apartments pay more.
The following example illustrates how this works: with a buildings insurance value of CHF 2,000,000 and a premium rate of CHF 0.29 per CHF 1,000 of insurance value, the annual premium equals CHF 580 for the entire building. The table below shows the breakdown between five units by value ratio.
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|
Unit
|
Value ratio
|
Premium share (illustrative)
|
|---|---|---|
| Unit 1 | 25 % | CHF 145.– |
| Unit 2 | 25 % | CHF 145.– |
| Unit 3 | 20 % | CHF 116.– |
| Unit 4 | 15 % | CHF 87.– |
| Unit 5 | 15 % | CHF 87.– |
| Total | 100 % | CHF 580.– |
Note: the figures are for illustrative purposes only. Premium rates vary depending on the canton and insurance model.
Condominium buildings insurance: security and peace of mind with Allianz
Allianz offers modular buildings insurance that can be adapted to the special circumstances of condominiums. You combine the components that your community of owners actually needs – fire and natural hazard damage, water damage, glass breakage, additional hazards, building facilities, buildings liability and earthquakes – all from a single source. Building components that do not count as your private property must be insured via the buildings insurance for the community of owners.
How you benefit at a glance:
- Emergency assistance around the clock in the event of a claim
- Individual extensions such as outdoor facilities, smart home or home protection cover
- Different deductible options, tailored to the community of owners’ budget
We are reliable partners through all phases of your property’s life, from the initial offer through to energy-efficient renovations.
Put together your individual buildings insurance policy
You now know which components are required for a condominium buildings insurance policy. In the next step, we will put together the ideal solution with you. Our local general agencies will advise you in person and calculate a quote that fits your building and your community of owners’ needs.
Frequently asked questions and answers
The community of condominium owners takes out buildings insurance together. The administration acts on behalf of all owners. It is not possible to take out individual policies per apartment for the building exterior as legally, the building belongs to everyone.
Only via add-on modules. Fire and natural hazard damage is included in the basic cover. With private insurers like Allianz, water damage caused by broken pipes, backing-up water or leaking equipment must be explicitly included as an add-on. In some cantons with a cantonal monopoly on buildings insurance, water damage can be insured as an additional component. The exact cover varies depending on the canton.
It is compulsory in most cantons. In 19 cantons it must be taken out via the cantonal insurance scheme, and in the GUSTAVO cantons of Uri, Schwyz, Obwalden and Appenzell Innerrhoden it must be obtained from a private insurer. Buildings insurance is voluntary in Geneva, Ticino and Valais, but is required by banks for mortgages and protects the capital invested.
Yes. The building is insured via the community of condominium owners. Individually, you need household contents insurance for your personal property such as furniture, electrical appliances and clothing, and personal liability insurance for damage that you cause yourself, e.g. if an overflowing bathtub floods your neighbour’s apartment.
Ask to see the community of owners’ current policy and check whether water damage, earthquakes and buildings liability insurance are included. In addition, make sure that the insurance value is up to date in order to avoid underinsurance. Anyone who significantly upgrades their apartment must report this to the administration – otherwise there is a risk of underinsurance for the entire community of owners. You should also read the section on insurance in the minutes of the last owners’ meeting.
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