Natural hazard events: what does insurance cover?
Natural hazard events such as flooding can destroy home contents. Comparis explains how to get cover.
10.02.2023
iStock / ollo
1. What is a natural hazard event?
In the insurance sector, a natural hazard event is considered a natural disaster or an event caused by natural forces. It might be a landslide, storm or the fire and natural hazard events defined in the Insurance Oversight Ordinance (IOO), such as flooding or avalanches.
Fire and natural hazard events constitutes one of the basic risks, in addition to water damage and theft, that are covered by home contents insurance. Glass damage can often only be insured as an add-on
2. What natural hazard damage is insured?
The Insurance Oversight Act (IOA) stipulates that coverage for natural hazards must be included in fire insurance. Fire hazards include fire, sudden smoke, lightning, explosions, crash or emergency landings of aircraft and spacecraft or parts thereof.
In addition to fire, the following nine events count as insured natural hazard damage to movable property:
High water: water in unusually large quantities as a result of extreme rainfall, but remaining within its natural or man-made boundaries.
Flooding: damage caused by water in unusually large quantities as a result of extreme rainfall that breaks its natural or man-made boundaries.
Storm: winds of at least 75 km/h that uproot trees or cause roof damage in the vicinity of the insured property.
Hail: hailstones that break skylights and tiles.
Avalanche: an avalanche engulfs a property and makes it uninhabitable.
Snow pressure: constant snowfall collects on the roof. The weight pushes the roof in.
Rockfall: large rock masses come loose and crash into buildings.
Rock damage: individual stones damage the walls of the building.
Landslide: soil and rock slip down a slope and destroy buildings.
3. What natural hazard damage is not insured?
The following events (not exhaustive) are considered by law not to be natural hazard damage:
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, failure to take defensive measures
Snow sliding from roofs
Groundwater penetrating the building underground
Regular rise and overflow of waters
Damage caused by water from reservoirs or other artificial water facilities
Backwater in the drainage system
Burst pipes within or outside of buildings
Water entering via terraces, balconies, open or closed doors and windows or through flat roofs
Frost damage to pipes or equipment
Damage due to vibrations due to collapse of artificially created hollow spaces
Pandemics
War, riot, revolution and vandalism
4. Are my home contents insured against natural hazard damage?
In most cantons, home contents insurance is optional. In the cantons of Vaud and Nidwalden, contents insurance against fire and natural hazards is compulsory and must be taken out via the cantonal buildings insurance provider. Insurance is also compulsory in the cantons of Fribourg and Jura, although you are free to choose the insurance provider.
However, the risks of water damage and theft that are insurable under basic contents cover also remain voluntary in the four cantons mentioned.
5. How is water damage insured?
Water damage is one of the most common types of damage to home contents and buildings. Two questions: "what is the cause of water damage and what has been damaged?" can usually clarify which insurance company pays out for the damage.
Cause of damage | Property | Movable property |
---|---|---|
Natural hazard event (e.g. flooding) | Buildings insurance | Contents insurance |
Water leaks from washing machine | Buildings water damage insurance | Contents insurance |
The excess is set by law for fire and natural hazards. It is 500 CHF.
In addition to natural hazards and water damage, basic home contents cover also includes theft in general (excluding simple theft outside the home). Damage to home contents caused by you can be insured via the accidental damage add-on. Damage to third-party property or persons caused by you can be insured under personal liability insurance.
6. When do I have to adjust the sum insured?
You should regularly check the sum insured under your home contents cover. If you make a claim, you may not receive the full payout if the value of your household goods is significantly higher than the sum insured.
7. What does contents insurance cost?
The annual premiums for home contents insurance vary depending on the scope of coverage and provider. The annual premium for a tenant household (sum insured 100,000 CHF), consisting of two adults, living in an 80m2, 3.5-room apartment, is available from around 115 CHF (as at 12 January 2021). These include cover for household effects against fire and natural hazards as well as theft at home.
This article was first published on 19.01.2021