What is personal belongings or contents protection?
Personal belongings or contents insurance in Switzerland covers damage to or the disappearance of the policyholder’s belongings in or from their home in the following circumstances:
1) Fire, smoke, lightening and explosions. These risks are covered separately by the state or Canton in most of Switzerland.
2) Water, gas or heating oil and damage caused by frozen and burst pipes.
3) Natural events (flooding, strong winds, hail, avalanche, weight of snow, land and rock slides…) These risks are covered separately by the state or Canton in most of Switzerland. Damage to the façade is not covered.
4) Burglary
Borrowed belongings and the belongings of one’s guests are also protected in the policyholder’s home for maximum 20% of the personal belongings inventory value through contents insurance in Switzerland.
Additional costs derived from the claim are also covered in the policyholder’s home for maximum 20% of the personal belongings inventory value in Switzerland (disposing of waste and damaged items, temporary windows and doors, lock replacement, temporary alternative housing etc)
Important:
i) Cash is limited to CHF 5’000.- and only compensated with a recent withdrawal receipt and proof of physical aggression.
ii) Unless valuable jewellery and watches are stored in a safe that weighs at least 100kg they are only covered for MAXIMUM 20% of the personal belongings inventory value. Individual items worth over CHF 5’000.- should be protected by a high value items insurance.
What amount should I be covered for?
The amount is different for each person. The amount must be calculated as precisely as possible by the policyholder based on their personal belongings inventory in Switzerland.
Minimum : CHF 20’000.-
Maximum : The replacement value of all of your personal belongings
Our expert’s recommendation
Underinsurance can penalize the policyholder by thousands of francs if they make a large claim.
It is a hazardous risk to pay a reduced annual premium by voluntarily underestimating one’s personal belongings inventory in Switzerland.The insurance company will always reduce the claim by the same percentage that the inventory is underestimated by. This means that the policyholder will only be paid CHF 10’000.- for a CHF 20’000.- claim if the insurance company considers the
personal belongings inventory is underestimated by 50%. Adding CHF 10’000.- to one’s insurance policy costs between CHF 20 and 25.- per year.
This is why our expert recommends calculating one’s personal belongings inventory as precisely as possible and adapting it when required during the life of the contract.
What deductible should I choose?
Minimum per event: Fire & water 0.- / Natural events 500.- / Burglary 200.-
Maximum: 10’000.-
Other: 200.- / 500.- / 1’000.- / 2’000.- / 5’000.- / 10’000.-
Our expert’s recommendation
Fire and water damage:
Fire and water cause serious damage, so claims related to these risks are statistically high.
The choice of a deductible is therefore personal; if one has to replace CHF 10’000.- of furniture after a fire or flood does one prefer to pay CHF 0.- , 200.- or 500.- out of pocket?
As the difference between CHF 0.- and 200.- is insignificant (less than CHF 10.- per year) 0.- is often chosen. Some choose to save CHF 15.- per year with a CHF 500.- deductible.
Our expert recommends maximum 200.- for both risks.
Natural events:
Insurance laws impose a CHF 500.- deductible on natural events claims.
Burglary:
A burglar can steal a single item, so claims are often smaller in case of theft; our expert therefore recommends a CHF 200.- deductible, the lowest available.
What value or amount is reimbursed in case of a claim?
Replacement value
Extended coverage that should always be included in contents insurance in Switzerland
.All risk
Choose a company that offers an “all risk” option. In the standard package …
.Theft outside of the home
Unless the policyholder is physically aggressed anything stolen outside of the home is not protected…
.High value item protection
If you have a musical instrument, watch, ring, painting, sculpture, camera, mink coat etc worth more than CHF 5000.- it should be protected separately for loss, breakage and theft.
.Fragile surfaces, windows & glass furniture
In the standard package your personal belongings are only protected in case of damage caused by fire…
.Lock out protection
In case you lose your keys it is important to have a coverage that will cover door opening and lock replacement.
.Extended Cantonal fire and natural events protection
In the Cantons that are covered by the Canton or state against fire and natural events it is recommended to add private extended protection to be fully compensated in case of a claim.
.Home improvement
Always increase the insured amount on your building insurance policy when you invest in home improvement projects to be fully compensated in case of a claim.
Extended coverage that can be added to the contents insurance plan in Switzerland
.Recommended if you have a garden or terrace:
Garden and outdoor equipment, swimming pool, plants, fences…
.Recommended if you have an E-bikeor a bike worth over CHF 2’000.-:
Protection in case of damage, destruction, theft.
.Recommended if you have pets or horses:
Accident and health insurance for cats, dogs and horses.
.Recommended if you have any individual high value items:
If you have a musical instrument, watch, ring, painting, sculpture, camera etc worth more than CHF 5000.- it should be protected separately for loss, breakage and theft.
.Recommended if you live in a seismic zone:
Protection in case of damage caused by an earthquake.
Examples of personal belongings or contents insurance claims in Switzerland
.A suffers serious water damage in his home
A’s washing machine breaks and floods the washing room and part of the living room; carpets and furniture are destroyed for the amount of CHF 12’000.-
A’s replacement furniture is financed by her personal belongings protection.
.A is burgled.
The damaged window is replaced by the building insurance and A is fully refunded for all of the stolen items he has invoices for by his personal belongings protection.
.A’s home is destroyed by a fire
A falls asleep and forgets to turn the stove off; the kitchen catches fire and the apartment burns down. A will receive the amount defined in the insurance policy by the personal belongings inventory to replace all of his personal belongings.
Glossary of Swiss insurance terms – Personal belongings or contents insurance
Personal belongings inventory
The personal belongings inventory should reflect the amount required to replace all of one’s personal belongings in case of loss or destruction by one of the four events covered, including clothes, furniture, valuables, leisure items, electronics… This amount is defined by the policyholder and will only be checked by the insurance company if a claim is made.
High value items insurance
In the standard personal belongings insurance package your personal belongings are only protected in your home in case of damage caused by fire, water or a natural event and burglary. A valuable piece of jewellery or a watch is worn all over the world and can be lost, stolen or broken anywhere. The personal belongings insurance will not protect it. High value item insurance is a worldwide protection that covers for loss, damage and theft, also known as all risk insurance.
Replacement value
The amount required to replace the broken item at today’s price.
Underinsurance
Underinsurance is the act of under estimating the true value of the risk to be insured.
This results in a lower annual insurance premium but will also result in the equivalent loss when a claim is made (“apply average” in insurance terminology).
An example illustrates that the loss occurred from a claim can greatly exceed the saving on the insurance premium.
If the policyholder underestimates the value to be insured by 50% they will be penalized by the same amount (50%) if they make a claim:
Value declared: 20’000.- / real value 40’000 (underinsurance value 50%)
Claim amount / damage: 10’000.-
Compensation: 5’000.- (-50%)
To insure the extra CHF 20’000.- would have cost between CHF 30 and 40.- per year; the loss on the claim is CHF 5’000.-
Home improvements
If you renovate your home or add value to your property when you build it by a change of floor (marble, improved parquet…), improving the kitchen or bathrooms or by adding roof windows etc it will increase the value of your property stated on the original sales contract. The cost of these home improvements must be added to the insured amount on your insurance policy for them to be taken into consideration in the event of a claim.
