Legal protection for homeowners: what is covered?
Disagreement with your tenant, neighbour or the caretaker? Disputes involving homeowners are covered by most legal expenses insurance policies. But be aware that basic budget insurance is not worth the cost.
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Personal legal expenses insurance extends to your rights as a property owner, but basic budget products often only cover certain areas.
Are you in a disagreement with your tenant, neighbour or the caretaker? Legal expenses insurance covers the costs of this type of legal dispute. Building liability insurance can even offer a solution in certain cases. Another option is the Hauseigentümerverband (HEV) homeowners' association, which assists members with more minor problems or questions.
Personal legal expenses insurance
Legal expenses insurance for homeowners covers various areas of law. A few examples are given below:
Compensation. Where a third party's liability insurance (or a liable third party themselves) refuses to pay for damage. A truck damages the garage door, but the owner's insurance company does not want to pay for the repair.
Employment contracts. Disputes between the insured and employees hired to maintain, repair or manage the insured building, such as gardeners or caretakers.
Own insurance policies. Your buildings insurance company decides that it is not its responsibility to reimburse you for the costs of water damage.
Work contracts / orders. Disputes arising from a work contract relating to the insured building. However, this applies only if no official permit is required for the work or its value does not exceed 100,000 francs.
Neighbour disputes. If a neighbour's new building obstructs your view, for example. Different insurers have different rules on this element of personal legal protection. Some limit the amount of cover, or pay only a defined amount for one-time advice from a lawyer.
Property and ownership rights. Disputes about ownership and limited rights of use. This applies in particular to easements and encumbrances that are entered in the land register, as well as land charges and boundary disagreements.
Rental property. Landlord-tenant disputes. This is another area of personal legal expenses insurance in which cover differs between insurers. Some offer landlord insurance as an add-on, but not all.
These areas of law are not always included as standard. What's more, cover for some areas may be capped. That is why the budget types of legal expenses insurance make little sense for homeowners.
Legal protection insurance usually covers legal costs and lawyers' fees, but premiums and benefits may differ between insurance companies. It's well worth comparing several insurances. The cheapest is not necessarily the best for you.
Tip: as a homeowner, it's worth investing in a product that gives you everything you need. Compare the benefits provided by the various insurance companies in detail.
Important note: when you take out a new policy, most insurers insist on a waiting period. This is typically between one and three months. You can only report a legal case after this period has elapsed. Insurance companies put this in place to prevent people only taking out legal expenses insurance after a case has already occurred.
Some legal expenses included in personal and building liability cover
Is someone holding you liable for damage in your capacity as homeowner? You may be covered by your liability insurance. It assumes justified cases against third parties and also defends you against unjustified claims. As a result, most cases are settled out of court. Homeowners are covered by liability insurance under the law on compensation for damages, but only if they can be held liable to third parties in their home-owning capacity.
For example, building liability insurance covers you if the postman slips on your icy property or if one of your roof tiles falls and hits your neighbour.
If the property is a single or multiple-family home that you live in yourself and is for residential use only, you may even be covered by your personal liability insurance. If there are more apartments or the space is used commercially, you will need building liability insurance.
HEV homeowners' association
For an annual fee, members of the Hauseigentümerverband (HEV) homeowners' association can call a dedicated number for property-related legal advice. This is not the same as comprehensive legal expenses insurance, however, and you will pay the costs of the call. These are 0.08 Swiss francs per minute for the first 19 minutes, and 1.90 francs per minute from the 20th minute onwards.