Insure your property, but what exactly?

Anyone buying a property also needs to ensure that they have the right insurance. In many cantons, for example, building insurance is compulsory, but this doesn’t cover all damage that may arise from natural disasters.

In the world of insurance, it can be hard to keep a clear view. Most property owners have an obligatory building insurance policy, but don’t have any idea exactly which damage is covered. We guide you through this insurance jungle so you can check whether your property is adequately covered or not.

Building insurance – compulsory in most cantons

With the exception of the cantons of Geneva, Ticino, Appenzell Innerrhoden and Valais, building insurance is compulsory for fire and natural disasters if you own a property. But when does the building insurance pay out and what kind of damage is not covered? Natural disasters or damage caused by natural forces, such as floods, storm damage, hail, avalanche, snow, rock fall, rockslides or landslides, are counted as natural events. What is missing from the cantonal building insurance, however, is insurance cover in the case of damage due to an earthquake – except in the canton of Zurich. Many policyholders are unaware of this. It is therefore important to check your insurance policy and, if necessary, to close any gaps in coverage through private supplementary insurance.

Water damage insurance – strongly recommended

Although the obligatory building insurance covers many of the worst disasters, water damage that is not caused by a storm or flood is not covered. But groundwater that gets into your basement, a burst pipe or a backed-up drain can result in major damage to the building. That’s why it’s important to clarify whether you are insured against this kind of water damage and, if not, to get information on the cover required.

Garden insurance – for the garden, pool or sculptures

Have you invested a lot of money in the design of your garden and created a relaxing oasis with a pool, seating areas or artfully landscaped zones? In that case, it’s also worth taking out garden insurance, since building insurance only includes the parts that are permanently attached to the building – such a conservatory or veranda. Everything else is part of the garden and requires additional insurance cover.

Household contents insurance – for your furniture and valuables

Finally, comprehensive household contents insurance is key to having good cover in the case of damage. This insurance covers your private possessions in the case of theft or damage from weather events, including furniture, electronic devices, clothes and jewellery. It is important to compare the various insurance providers and to cover a sufficiently high amount – as fire damage can destroy all your belongings. Moreover, insurance policies may have different conditions in terms of deductibles, so a comparison is always worthwhile.

When does which policy take effect?

In the case of storm damage, for example, both your building insurance and your household contents insurance can cover damage. Depending on whether the damage affects a moveable object, such as your barbecue, or fixed building parts, either the household contents insurance or the building insurance will cover the damage. This is why it’s so important to have comprehensive insurance, so that you are covered in all possible cases of damage.

Need some help? Our real estate agents are on hand and happy to refer you to the appropriate insurance experts.