Insurances for home owners: An overview

1. Building insurance: highly recommended

Probably the most important and key insurance for home owners is building insurance. It covers the costs of damage caused by fire and natural hazards, such as storms, hail, flooding and avalanches.

In most cantons, it is compulsory and is concluded through the cantonal building insurance. But even in Geneva, Ticino, Valais and Appenzell-Innerrhoden (excluding the Oberegg district), where there is no compulsory insurance, it should absolutely be concluded. There are private insurers in these regions who offer the corresponding protection.

In our detailed article on building insurance, we explain all of the details and provide some valuable tips on safeguarding against natural disasters.

2. Household insurance: highly recommended

While building insurance covers the house itself and all of its structural elements, household insurance protects the movable property within the house, i.e. the household contents. Furniture, clothes, other personal items, household appliances and valuables are thus covered in the event of damage caused by fire, water or natural hazards, broken glass and theft.

It is important that the insured sum corresponds to the actual value of all items in the house. This should be reviewed every few years and adjusted, if necessary.

More details and tips can be found in our household insurance guide.

3. Building liability insurance: recommended for condominium owners

Building liability insurance covers you if a person is injured or an object belonging to someone else is damaged in connection with your property. For example, if a tile comes loose from your roof and falls on a car, you’re liable for this damage. It is important to note that you only need building liability insurance if you are a co-owner (e.g. a condominium owner) or you own a multi-family house where more than two parties other than you live.

If you live in a single-family house, your private liability insurance covers such instances.

4. Construction insurance and building owner’s insurance: recommended during the construction phase

If you’re planning a new construction, a comprehensive renovation or refurbishment, you should be sure to have the correct insurance during the construction phase. In particular, this includes construction insurance and building owner’s liability insurance.

Construction insurance is a type of all-risk insurance that covers the structure and as well as all construction materials and components against unforeseen damages during the construction or renovation phase. Depending on the insurer, construction insurance covers natural events, damage, vandalism, theft and construction delays as a result of disputes.

By contrast, building owner’s liability insurance covers you, as you are automatically liable as the building owner, if a third party suffers an injury or damage during construction. For example, if a hammer falls on the roof of someone else’s car, you, as the building owner, are liable and must pay for the damage. It would be good if you had concluded building owner’s liability insurance in this case, as it would pay the costs incurred.

We have put together all of the information and tips on insurance for house construction for you here.

5.  Supplemental insurance: optional based on your needs and the situation

Building insurance is the main pillar to protect your property and it covers a broad range of possible damage. However, there are special circumstances where it may be a good idea to conclude special supplemental insurance. Here, we present the most important types of voluntary supplemental insurance.

Water damage insurance

Highly recommended, as it provided insurance protection against water damage that is not covered by building insurance. This includes, for example, broken pipes, rainwater that gets inside and backwater from the sewer system. More details can be found in our article on Safeguarding against natural disasters.

Earthquake insurance

While major earthquakes are rare in Switzerland, earthquake insurance should be considered because the damage as a result of this type of natural event is generally not included in building insurance.

Environmental insurance

Protects your property, garden and terrace. These areas are generally not included in building insurance. Recommended for owners who place valuable items on the outside of their property. For example, if a tree falls during a storm and destroys your terrace along with your terrace furniture, garden wall and maybe even your lovingly arranged herb garden, environmental insurance will cover the costs.

Glass breakage insurance

Household insurance sometimes covers the cost of broken glass. If this is not the case, then glass breakage insurance can be concluded as a supplement to building insurance. It should cover both glass furnishings (tabletops, mirrors, ceramic hobs, etc.) and damage to building glass (windows, sun rooms, etc.).

Building installations insurance

Can be used to provide insurance protection against damage to all building installations, such as heating, air conditioning and photovoltaic systems. You should consider such insurance if these systems are exposed to a high level or special risks. However, they are usually not included in owners’ standard insurance policies.

6. Income and asset insurance

As an owner, you want to protect your home and property. These also include your personal finances and income, because as a property owner you need to make sure you always have sufficient financial means in case you need to make repairs or renovations are necessary. The following insurance will help you protect your capital and (future) income in the event of unforeseen adverse events.

Life insurance

A distinction is made here between term life insurance and whole life insurance. Both are private provisions to cover adverse events or provide an income in old age and to protect you and your family. With term life insurance, you do not build up any capital. The premiums are relatively favourable, but the insurance only pays if the insured risk occurs. With whole life insurance, you also build up capital that can later be paid out. You will find a detailed article on life insurance in our portal.

Disability insurance

If you are no longer able to work as a result of an accident or an illness, disability insurance will pay you a pension to replace your salary. This will allow you to protect yourself and your family in the event of a health problem.

Mortgage insurance

Mortgage insurance covers lost income in the event of unemployment or death. If you lose your job, the agreed mortgage amount will continue to be paid by the insurance for the contractual benefit period. In the event of your death, a lump sum will be paid to your survivors to help repay a portion of the mortgage.

Legal protection insurance

No one wants to have problems with their neighbours, tenants or people passing by, but sometimes your home can quickly become a point of dispute. Legal protection insurance can provide advice and support and pay court and attorney costs. Landlords should certainly consider it, but private legal protection insurance is also a good investment in case you suddenly need (expensive) legal advice.

Learn more about the following types of insurance as well:

Building insurance and weather insurance
Construction insurance
Household insurance
Private liability insurance
Legal protection insurance
Life insurance