How to fully protect your home

Mandatory building liability insurance protects you against claims resulting from personal and property damage in connection with your building. However, buildings insurance covers the costs if the insured building is damaged or destroyed.

Insurance against fire and natural hazards is also mandatory in most cantons and is covered by cantonal buildings insurance. In Uri, Schwyz and Obwalden you can decide yourself with which provider to take this cover. Only in Geneva, Ticino, Valais and the Canton of Appenzell Innerrhoden – with the exception of the Oberegg district – is there no obligation to insure against fire and natural hazards.

Personal liability insurance usually covers you if you injure somebody or cause damage to their property, for example if you hit your neighbour’s window instead of the goal while playing football or leave a scratch on someone else’s car with your bicycle. It applies worldwide and generally to everyone living in the same household – including your pets.

Household contents insurance covers your furnishings and items at home. It provides protection against fire and natural hazards, water damage, theft and glass breakage. Insurance cover applies to all household contents, with the new or replacement value of the items paid out in the event of damage.

Our rule of thumb is that property expenses (5% imputed mortgage interest rate, repayments and maintenance and ancillary costs) should not amount to more than a third of your gross income. This also applies in the event of disability, death and retirement. Based on a current mortgage interest rate of 1.5% and an imputed rate of 5%, this results in a difference of 3.5%. In the case of a mortgage of CHF 500 000, this difference in interest means that you can save CHF 15 000 per year. We recommend you put these interest savings aside, for example in the form of a fund-based savings plan.

For larger plots with a lot of space around the building, you should also take out building surroundings insurance. This covers damage to your property, garden or terrace that is not included in the buildings insurance: for example, if a storm falls a tree, wild animals destroy your herb garden or the fence is damaged.

Building surroundings insurance can be included as a supplement to buildings insurance.

Severe earthquakes are extremely rare in Switzerland, making their potential for destruction and damage all the greater. Earthquake insurance covers you in the event of damage to the building following an earthquake. This includes cracks in the masonry or façade, static damage and broken pipes that are not or insufficiently covered by buildings insurance.

Earthquake insurance can be included as a supplement to buildings insurance.