Water damage: which insurance pays and when?
Which insurance covers the cost of water damage? What should I do in case of water damage? Comparis explains.
28.03.2024
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1. What is water damage?
Water damage is caused by water or other liquids from water pipes. It also includes damage caused by aquariums, waterbeds or ornamental fountains.
There is no separate water damage insurance in Switzerland. Instead, cover against water damage is provided by home contents insurance or building insurance.
2. When does home contents insurance cover water damage?
Are your household contents affected by water damage? If so, home contents insurance will cover the costs of any damage. Home contents include all moveable objects within your home, such as furniture, pictures or electrical appliances. This includes leased items and pets.
As an example: imagine your washing machine leaks and ruins your Persian carpet. Your home contents insurance will replace the carpet at its replacement value minus the deductible.
Damage caused by natural disasters such as high water, hail or flooding is covered by home contents insurance. Check to see what benefits your policy provides and if there are any exclusions.
Personal liability insurance is used if you cause damage to a third party. This could be an overflowing bathtub damaging a neighbour’s apartment, for example.
3. When does your building insurance cover water damage?
Was your façade damaged by a storm or hail? Did flooding ruin the floors and walls? Building insurance will cover the costs in these cases. This insurance covers damage to the building itself.
However, building insurance doesn’t cover all types of damage. It doesn’t cover water entering through an open window or skylight, for example. Moreover, your insurance won’t cover any damages caused by faulty construction design.
Building insurance only applies to the building itself and doesn’t include outdoor damage. Therefore, you must take out supplemental insurance if you want to insure pools, saunas or fountains in your garden.
4. Which type of water damage insurance do I need?
Tenants
In most cantons, home contents insurance is optional. Nevertheless, it’s worth having if you are a tenant.
Home contents insurance covers your possessions in the event of water damage at their replacement value. Damage to the building itself is covered by the landlord’s building insurance.
Water damage due to heat pumps
A heat exchanger transfers geothermal heat to a water cycle. Any liquid leaking from this cycle can lead to water damage. Home contents insurance normally covers this damage, though in some cases insurers may require a premium surcharge for this.
Homeowners
Building insurance is compulsory for homeowners in most cantons. However, taking out building insurance is usually a sensible thing to do even in cantons where it’s not obligatory, as water damage can quickly become very expensive.
Note: cantonal building insurance doesn’t necessarily cover all water damage. It’s therefore usually worth taking out supplemental water damage insurance. It covers the resulting costs, for example, if you have underground seepage or backwater from the drainage system.
5. What should I do in case of water damage?
After discovering water damage, the first few minutes are crucial. The immediate measures to take vary depending on the extent of damage. Was the damage caused by high water or flooding? Contact the fire brigade immediately. Is there an unpleasant smell in your apartment? Contact your landlord.
Turn off the water: stop the water supply and the main water line if necessary. If this isn’t possible, prevent water from spreading with a bucket or cloths.
Turn off the power: disconnect the electricity in the affected rooms.
Protect furniture: move your furniture to a dry room.
Inform your landlord: if you live in a rented apartment, contact your landlord as soon as possible.
Notify your insurance provider: homeowners should first contact their building insurance provider. Tenants should contact their home contents insurance provider.
Take pictures: take some photographs of where the leak is happening.
Call in specialists: professional plumbers can professionally repair water damage. You will receive instructions from your insurance company or rental company on exactly how to proceed.
Tip: if possible, report the damage to your insurance company on the same day. Most providers impose fixed deadlines for reporting damage.
This article was first published on 31.05.2022
