Home insurance: what property owners need to know.
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AT A GLANCE
You’ve only just got the keys in your hand, and you are already asking yourself the question: which insurance policies do I need now? In Switzerland, the rules vary from canton to canton. We explain how to insure your home properly.
Comprehensive cover for your home with Allianz
We explain which components make sense for your house – with easy-to-understand advice that is tailored to your needs.
Why is a single home insurance policy insufficient in Switzerland?
Homeowners in Switzerland can get the best cover with a combination of three components:
If one of these policies is missing, you can easily end up with a big bill to pay. Mains water damage without household contents insurance? You pay for the damage to your furniture and electronics yourself. Jewellery stolen in a burglary? You only get compensation if you have the right cover. And if someone slips and falls over on your forecourt, they can sue you for damages. Without personal liability insurance, you have to pay the costs yourself.
The three components at a glance – what they cover and which risks are included:
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|
Component
|
Function
|
Risks covered
|
|---|---|---|
| Buildings insurance | Covers the building itself | For example, fire, natural hazards, water damage, glass breakage (depending on the canton and policy) |
| Household contents insurance | Covers the contents of the house | For example, fire, natural hazards, burglary (water damage and glass breakage depending on the policy) |
| Personal liability insurance | Covers you against financial claims of third parties | Personal injury and property damage that you cause to others |
GOOD TO KNOW
What is the difference between buildings and household contents insurance? Anything that is permanently installed counts as belonging to the building. Anything you could take with you when you move house counts as part of your household contents. The kitchen and the bathroom belong to the building, whereas the sofa and TV are part of your household contents.
Which home insurance is compulsory in Switzerland – and what depends on the canton?
In Switzerland, buildings insurance is regulated by the canton. Different rules apply depending on where you live. Nineteen cantons have cantonal buildings insurance. In the GUSTAVO cantons (Geneva, Uri, Schwyz, Ticino, Appenzell Innerrhoden, Valais and Obwalden) and the Principality of Liechtenstein, you have to choose a private insurer.
Important: you must present proof of buildings insurance to the bank when you take out a mortgage. This rule applies in every canton, regardless of whether the insurance is cantonal or private.
The following table summarises the rules for buildings insurance in Switzerland:
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|
Group
|
Cantons
|
Rule
|
|---|---|---|
| Cantonal buildings insurance | 19 cantons (e.g. Zurich, Bern, Lucerne, Aargau) | Mandatory insurance via the responsible cantonal buildings insurance scheme; covers fire and natural hazards |
| GUSTAVO cantons | GUSTAVO cantons and Liechtenstein | No cantonal buildings insurance; cover through private insurer (in some cases compulsory, in some cases voluntary) |
| Special cases | Parts of Appenzell Innerrhoden (Oberegg district) | Special cantonal regulations; check each case individually |
Buildings insurance outside the GUSTAVO cantons
Buildings insurance is regulated by law in 19 cantons: the responsible cantonal buildings insurance scheme covers damage caused by fire and natural hazards. The premium is based on the insurance value of the building.
What this cover does not include is mains water damage, glass breakage, earthquakes, theft and building facilities. You need separate supplementary insurance for mains water damage, glass breakage and earthquake cover. Our advisors will explain which policies are best for you at Allianz.
Buildings insurance in the GUSTAVO cantons
There is no cantonal buildings insurance in the GUSTAVO cantons (Geneva, Uri, Schwyz, Ticino, Appenzell Innerrhoden, Valais and Obwalden) or Liechtenstein. In these cantons, you can choose a private insurer like Allianz.
A package that combines fire, natural hazard damage, water damage and glass breakage in one contract is recommended. That way, you have everything you need in a single policy.
GOOD TO KNOW
After buying a house in the GUSTAVO cantons and the Principality of Liechtenstein, you have the right to cancel an existing buildings insurance policy and switch to another provider. This right applies immediately after the transfer of ownership. Take advantage of it and compare your coverage and premiums.
Supplementary insurance that is worth having for your home and household contents
Fire and natural hazards cover is mandatory in all 19 cantons in which buildings insurance is required by law. However, other types of insurance may also make sense for certain cantons and houses. Which cover is best for you depends on your house and your situation.
A practical example:
In a single-family home in the canton of Lucerne, a pipe bursts on the ground floor. The water damages the parquet flooring (buildings insurance) and the couch and TV (household contents). If you do not have both types of insurance, you will have to pay the costs yourself.
Incidentally, hail damage to a photovoltaic system counts as natural hazard damage. This means that it is covered by your buildings insurance, provided that fire and natural hazards are included in your policy. It is worth checking this.
Earthquakes and natural hazards in Switzerland
Earthquakes are more common in Valais and the Basel region than in the rest of Switzerland. According to the Federal Office for the Environment, the country experiences between 1,000 and 1,500 tremors per year on average. Valais is the region with the highest risk, followed by Basel. Cantonal buildings insurers offer optional earthquake cover, but this only pays for part of the loss.
Despite this, only five to ten percent of buildings in Switzerland are insured against earthquakes. If you live in an at-risk region, you should consider taking out private earthquake insurance.
GOOD TO KNOW
“In Switzerland, it is not clearly established who compensates homeowners to what extent. Buildings insurance is unlikely to pay, as only a small proportion of buildings are insured against earthquakes. Statutory earthquake cover is only provided as part of buildings insurance in the canton of Zurich.” – Peter Burkhardt, Allianz expert
Heat pumps, solar panels and building facilities
Cantonal buildings insurance often covers fire and natural hazard damage to photovoltaic systems. For other risks such as theft, technical defects or loss of earnings, you need separate photovoltaic insurance. This also applies to heat pumps and battery storage devices.
Whether you have sufficient cover for your device or system depends on the scope of cover chosen. Our advisors will be happy to clarify this with you.
How to get the right insurance as a homeowner in Switzerland: a step-by-step guide
The question of insurance can feel overwhelming, especially after buying a house. These four steps will help you to maintain an overview.
Step 1: Work out which rules apply in your canton. Is your house located in a GUSTAVO canton or Liechtenstein? Then you need a private insurer. In the other 19 cantons, the cantonal buildings insurance scheme is responsible.
Step 2: Insure fire and natural hazards. Make sure that these risks are covered. This is mandatory in most cantons.
Step 3: Consider additional risks. What is not covered by your basic policy? Often, mains water damage, glass breakage, earthquakes and building facilities are not included – especially in cantons with a cantonal buildings insurance scheme.
Step 4: Add household contents and personal liability. You should also think about your furniture, and about what happens if you accidentally harm or cause damage to someone else. Both are key parts of protecting your home.
The best thing to do is to talk to our advisors. They will tailor your insurance package to your canton and situation.
Home insurance from Allianz: everything from a single source
For homeowners, buildings, household contents and personal liability insurance are often useful components of a home insurance package.
Depending on the canton, you might add supplementary insurance for mains water damage, glass breakage and earthquakes as well.
We offer all three components from a single source. One contact person, coordinated cover – and if something happens, we are there for you.
Frequently asked questions and answers
Buildings insurance against fire and natural hazards damage is compulsory in most cantons – either via the cantonal buildings insurance scheme or – in the GUSTAVO cantons and the Principality of Liechtenstein – via a private insurer. While personal liability insurance is not required by law, in practice it is virtually indispensable. Household contents insurance is optional in almost all cantons, but it is strongly recommended nonetheless. Do you live in Nidwalden, Vaud, Fribourg or Jura? Cover for fire and natural hazard damage to household contents is mandatory in these cantons.
In the case of owner-occupied single-family houses, personal liability insurance is generally sufficient. Separate buildings liability cover only makes sense if you own an apartment building or rent out your house. In this case, your personal liability insurance is not liable for any loss/damage arising in your capacity as the owner.
In the event of a change of ownership, the existing policy is automatically transferred to the new owner. In the GUSTAVO cantons and the Principality of Liechtenstein, you have the right to change the insurance after the transfer of ownership, i.e. you can terminate the policy and switch to another provider. It is important to check the terms and conditions of the existing policy at an early stage.
Buildings insurance often covers fixed installations such as heat pumps and solar panels – but the cover is not automatic and can often be incomplete. If you are unsure whether your installation is insured, it may be worth taking out separate cover. Our advisors will be happy to clarify this with you.
Among other things, the premium depends on the canton, the value of the building, the building materials used and the additional components you take out. For that reason, it is not possible to make a blanket statement about the cost. Our advisors will be happy to put together a personalised quote for you.
AN APPOINTMENT, PLEASE!
The optimal insurance for you? Let's find out during a personal appointment.
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