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- Comparing building insurance
- From renting to owning a property: What insurance do I need?
What should you bear in mind when comparing building insurance?
In Switzerland, over 90 per cent of private homeowners take out voluntary supplementary insurance for their property, as the compulsory cantonal building insurance usually only covers fire and natural hazards. Before you compare individual quotes, you should consider which types of insurance make sense for your property. This guide will help you with that.
Content at a glance
- Coverage: Certain key risks are not covered by cantonal building insurance: these include water damage resulting from burst pipes or sewer backflow, damage caused by gross negligence, third-party liability claims and glass breakage.
- Optional Coverages: The add-ons “building water insurance” and “gross negligence cover” are advisable for most residential properties.
- Further Coverages: Depending on the location and fixtures of your property, you should insure against further specific risks such as damage caused by martens, faults in building technology (heat pumps, solar panels and lifts) or vandalism.
Is building insurance compulsory in Switzerland?
Yes, apart from the cantons of Geneva, Valais, Ticino and large parts of Appenzell Innerrhoden, building insurance against fire and natural hazards is compulsory in Switzerland. In the canton of Appenzell Innerrhoden, it is only legally required in the district of Oberegg.
Except for the so-called GUSTAVO cantons (Geneva, Uri, Schwyz, Ticino, Appenzell Innerrhoden, Valais and Obwalden), all cantons in Switzerland have compulsory cantonal building insurance. In the cantons of Uri, Schwyz, and Obwalden, buildings must be insured against fire and natural hazards with a private insurer.
How is building insurance regulated in Switzerland?
Most cantons in Switzerland have compulsory cantonal building insurance, which covers damage to buildings caused by fire and natural disasters. Exceptions are the so-called “GUSTAVO cantons”, which do not have cantonal building insurance. The acronym “GUSTAVO” refers to the cantons of Geneva, Uri, Schwyz, Ticino, Appenzell Innerrhoden, Valais and Obwalden.
In the cantons of Uri, Schwyz and Obwalden, buildings must be insured against fire and natural hazards through a private insurance policy. In the cantons of Geneva, Valais and Ticino, however, there is no statutory insurance obligation for buildings. Here too, buildings can be insured through private insurance. In the canton of Appenzell Innerrhoden, an insurance obligation applies only in the district of ‘Oberegg’. Here, buildings must be insured with the district’s own ‘Assekuranzverwaltung Oberegg’.
As compulsory cantonal building insurance only covers fire and natural hazards, over 90 per cent of Swiss homeowners take out voluntary supplementary insurance to cover additional risks. Depending on the canton, certain additional risks, such as water or glass cover, may also be included as an option under the cantonal building insurance.
Which risks do cantonal building insurance policies cover, and which do they not?
Cantonal building insurance policies generally only cover damage to the building caused by fire, smoke, or natural disasters. However, the following types of damage are usually not covered by cantonal building insurance:
- Water damage caused by faulty pipes or sewer backflow
- Damage caused by gross negligence
- Glass breakage on the building (for example, in a conservatory)
- Vandalism
- Damage to building services (heat pump, solar system, lift, etc.)
- Damage to structural elements such as swimming pools, garden sheds, walls and garden plants
- Damage caused by earthquakes
- Damage caused by martens and insects
- Damage to third parties (for example, caused by a falling brick)
- Legal disputes
Such damage can be additionally insured through private insurance. In some cantons, certain risks, such as water or glass cover, can be optionally included in the cantonal building insurance policy.
Which additional building insurance policies are advisable?
Whether supplementary insurance for your building is worthwhile depends on the characteristics of your building and your insurance needs. The prevalence of individual supplementary insurances varies greatly across Switzerland. The following figures are rough estimates based on market analyses and publicly available data from the SIA and may vary depending on the region and provider.
You can find further information on each supplementary insurance in the FAQs. It is best to seek free, no-obligation advice from our partner, Mobiliar.
- Building water damage insurance: 90% of homeowners
- Gross negligence: 60% of homeowners
- Building glass breakage insurance: 50% of homeowners
- Building services insurance: 20% of homeowners
- Solar insurance: 30% of homeowners with a solar installation
- Earthquake insurance: 15% of homeowners
- Property surroundings insurance: 10% of homeowners
- Comprehensive building insurance: < 10% of homeowners
- Building liability insurance: 80% of homeowners
- Property legal protection: 25% of homeowners
FAQ on supplementary building insurance
Building water damage insurance is generally advisable for any residential property and is usually required by banks when granting mortgages. It protects against the costs of burst pipes, sewer backflow or frost damage. Cantonal building insurance, on the other hand, only covers natural hazards such as flooding.
Gross negligence cover is generally advisable for all homeowners, as fires, for example, are often caused by gross negligence (e.g. leaving a candle burning unattended). Without gross negligence cover, the insurer may reduce the payout in the event of a claim. The insurance premium for this add-on is usually low.
Building glass breakage insurance is particularly worthwhile for buildings with large glass fronts, conservatories or expensive specialist glazing, as well as for buildings frequently exposed to vandalism. For houses with small windows, you can bear the risk of glass breakage yourself. Glass breakage insurance is also included in comprehensive building insurance and usually has a maximum payout limit.
Although Switzerland is not a high-risk area, earthquakes can lead to total losses. These are either not covered at all or only inadequately covered by cantonal building insurance. Earthquake insurance is therefore advisable for owners who could not financially cope with a total loss of their property or who live in regions with an increased risk. These include, for example, Basel and Valais.
Garden insurance is advisable if you have an elaborate garden design featuring pools, biotopes, garden walls or valuable plantings. Whilst building insurance usually ends at the house wall, this additional cover protects against natural hazards affecting structures and plantings on the property. Important: Cantonal building insurers have different interpretations of what constitutes part of the building.
Building services insurance is worthwhile for modern properties with technical installations such as heat pumps, lifts, ventilation systems or smart home technology. Unlike the basic cover provided by cantonal building insurance schemes, it also covers damage caused by internal faults such as short circuits, material defects, or operational errors. Once the manufacturer’s warranty has expired, building services insurance protects against high repair costs.
Solar insurance is generally advisable for any property with a solar installation. Whilst cantonal building insurers usually cover hail and fire damage to solar installations, loss of income, damage to cables caused by martens and technical defects are only covered by supplementary solar insurance. Such supplementary insurance is particularly recommended for solar installations with expensive battery storage systems, as it safeguards the investment. Important: Loss of income is not fully covered by every solar insurance policy.
Comprehensive building insurance is particularly advisable for buildings that are frequently targeted by vandalism or are located in a marten hotspot. If you live in the building yourself, comprehensive building insurance usually also covers some accidentally caused damage, such as to the parquet flooring, washbasins, glass-ceramic hob or windows. Damage caused by martens can also be insured with some providers via a separate rodent damage module, which is cheaper than comprehensive building insurance.
Comprehensive building insurance is sometimes referred to as “all-risk building insurance” or “all-perils cover”. Despite its name, all comprehensive building insurance policies contain exclusions such as normal wear and tear, defects in the building site and intentional damage.
Building liability insurance is generally advisable if you rent out or lease your property. In this case, the cover provided by personal liability insurance is usually no longer sufficient. The distinction from personal liability insurance depends on the specific policy. It is worth taking a look at the insurance terms and conditions.
Property legal protection is particularly advisable for property owners planning a renovation project or wishing to let or lease out their property. Legal disputes relating to property can quickly become costly.
Furthermore, property legal protection may be worthwhile if you do not live in your property yourself. In this case, private legal protection often does not cover neighbourhood disputes. Please note that with many legal protection policies, there is a three-month waiting period after taking out the policy before the insurance covers legal disputes.
Summary: What should you bear in mind when taking out additional building insurance?
Get personal advice to complement your own research. When comparing quotes, ensure they include at least building water damage cover and gross negligence cover, and that the excess does not exceed 500 Swiss francs. Higher excesses are usually not worth it when compared to the additional costs in the event of a claim. Check the maximum amounts and exclusions for each supplementary cover option.
Also ensure that the sum insured corresponds to the actual replacement value. This also applies to swimming pools and garden walls. With older buildings and in view of rising construction costs, there is a risk of underinsurance.
Also check whether burglary damage to the building is covered by the residents’ home contents insurance, and if in doubt, include burglary damage in the policy. If you live in the countryside near the edge of a forest, you should also insure your building against damage caused by martens.
