Natural hazard damage and insurance: what is covered?

1. What is a natural hazard event?

In insurance, a natural hazard event is considered a natural disaster or an event caused by natural forces. These could be landslides or storms. Damage caused by these kinds of events is called natural hazard damage.

Fire and natural hazard events are among the basic risks covered in home contents insurance. Other types of damage such as glass damage can often only be covered by supplemental insurance.

2. What natural hazard damage is insured?

Insured natural hazard damages include the following according to Art. 173 of the Insurance Oversight Ordinance (IOO, link not available in English):

• Flooding: Disproportionate amounts of water as a result of excessive precipitation. However, this remains within natural or human limits.

• Extreme flooding: Damage caused by flooding. The water exceeds natural or human limits.

• Storms: Winds of at least 75 km/h They must uproot trees or damage roofs in the vicinity of the insured property.

• Hail: Hailstones that break roof windows and tiles.

• Avalanches: An avalanche engulfs a house and makes it uninhabitable.

• Load from heavy snowfall: Constant snowfall collects on the roof. The weight caves the roof in. An exception applies if the damage is limited to

  • bricks and other roofing materials,

  • chimneys,

  • gutters and drainpipes.

• Rockslides: Large masses of rock come loose and fall on buildings.

• Rockfall: Individual stones damage the walls of a building.

• Landslides: Soil and rock slip down a slope and destroy buildings.

According to the Insurance Oversight Act (IOA), coverage for natural hazards must be included in fire insurance (Art. 33 IOA, not available in English). Fire hazards include:

• Fire

• Sudden or accidental smoke damage

• Lightning

• Explosion and implosion

• Crashing and emergency landing of aircraft and spacecraft or parts of such craft

• Depending on the insurance policy, scorching damage up to a low limit. Scorching damage is caused by heat without fire.

3. What is not considered a natural hazard in insurance?

The following don’t count as natural hazards (Art. 173 IOO, not available in English):

• Damage caused by earthquakes and volcanic eruptions

• Damage caused by subsidence, shifts in the earth caused by human intervention, or poor building sites

• Damage caused by defective construction, inadequate building maintenance or failure to take avoidance measures

• Snow sliding from roofs

• Groundwater penetrating the building underground

• Regular rising and overflowing of bodies of water

• Damage caused by water from reservoirs or other man-made water facilities

• Backlog in the drainage system

• Damage caused by vibrations due to the collapse of artificially created hollow spaces

In addition, damage to easily movable structures is only insured by special agreement. These include, for example, festival huts and greenhouses.

4. Are my home contents insured against natural hazard damage?

Home contents insurance is optional in most cantons. There are some exceptions:

• Vaud

• Nidwalden

• Fribourg

• Jura

Vaud and Nidwalden prescribe a cantonal fire insurance policy. In the cantons of Fribourg and Jura, you are free to choose the insurer.

Other insurable risks are also voluntary in the four cantons mentioned. This includes water damage and theft.

5. Damage due to natural hazards: deductible in Switzerland

The deductible is set by law for fire and natural hazards. It is 500 francs per insured event.

Important: if your insured sum is lower than the value of your home contents, you are underinsured. In that case, you will usually not be reimbursed for the full value of your home contents. If so, you will have to pay more than just the deductible.

6. How much does home contents insurance cost?

The annual premiums for home contents insurance vary depending on the scope of coverage and the provider.