What is high value items insurance protection?
In the standard contents insurance package your personal belongings are only protected in your home in case of damage caused by fire, water or a natural event and partially in the event of burglary. In Swiss insurance law burglary refers to the theft of an item (s) from a person’s home when they are not physically present, and robbery refers to the theft of an item (s) when a person is forced to give the item (s) to the thief because they are threatened, or violence or force is used. Protection for jewellery and other valuable items is limited to a percentage of the personal belongings inventory value or insurance amount specified in the policy.
A valuable piece of jewellery or a watch is worn all over the world and can be lost, stolen or broken anywhere. As illustrated above the contents insurance policy has a capped amount for jewellery and will only protect it in the event of robbery (theft with the use of violence or force) outside of the home and burglary inside the home, making it a poorly covered risk.
The only way to cover jewellery, watches and other high value items at their full value, inside and outside of the home worldwide is high value items insurance. High value items insurance in Switzerland covers:
1. Loss
2. Damage and repair
3. Loss of value
4. Burglary
5. Robbery
6. Larceny (simple theft)
The most common items protected by Swiss high value items insurance include:
Watches, rings, art (paintings and sculptures), musical instruments, hearing aids, valuable collections, audio-visual equipment, notebooks and mink coats.
Multiple items can be insured by Swiss high value items insurance, but must be accounted for individually.
What amount should I be covered for?
The amount must correspond as precisely as possible to the replacement value of the item or high value items to be protected. The insurance company will define this by:
1. The original invoice or invoices.
2. An official estimate from a recognized expert.
Minimum : CHF 5’000.- (less is possible)
Maximum : CHF 50’000.- for one item without special conditions. CHF 100’000.- for multiple items without special conditions.
Our expert’s recommendation:
Swiss high value item protection is a lump sum insurance, so each high value item should be estimated as accurately as possible at current replacement value. Do not hesitate to get an estimate from a recognized expert if the value of the item has increased since purchase or has been inherited.
We recommend re-evaluating the item every 3 to 5 years in case it’s value increases.
What deductible or ‘excess’ should I choose?
The high value item insurance decuctible is generally imposed upon the policyholder by the insurance company. It can be as high as 10% of the value of the item to be insured or in the best case scenario as low as CHF 0.-
Our expert’s recommendation:
Ask for two quotes with the lowest deductible possible and choose depending on the value of your item(s) and on the price difference between 200.- and 0.-
Avoid all policies that impose a 10% deductible.
What value or amount is reimbursed in case of a high value item insurance claim?
The amount specified in the insurance policy as it is a lump sum insurance.
Examples of high value item insurance claims in Switzerland
.A breaks her violin with a declared value of CHF 15’000.-
A’s violin falls on the floor and breaks, it cannot be repaired. The violin is covered for CHF 15’000.- The insurance company pays A CHF 15’000.- less the deductible to replace the broken violin.
.A’s CHF 45’000.- necklace breaks and must be repaired
The reparation costs CHF 2’500.- and the expert now estimates the value of the repaired necklace at CHF 35’000.- The insurance company will pay for the CHF 2’500.- repair and will pay the policy holder CHF 10’000.- to compensate the lost value.
Glossary of Swiss insurance terms – High value items insurance
Lump sum insurance
The amount is capped at the amount mentioned on the insurance policy.
Replacement value
The amount required to replace the broken item at today’s price.
Deductible or “excess”
The deductible or “excess” is the amount the insurance policy holder will pay out of pocket before the insurance company starts to refund the claim. The deductible can be applied per claim or per calendar year depending on the type of insurance. The lower the deductible the higher the insurance premium, as a low deductible costs the insurance company more when a claim is made.
Lost value
When a valuable item has to be repaired its market value can decrease, this “lost value” is compensated through a serious high value item insurance policy.
