Why household insurance is so important

What is household contents?

To start, let's first address the question of what exactly constitutes household contents. Essentially, household contents includes all movable items that belong to you. Simple examples include clothing, furniture, electronics, jewelry, etc., but also consumables like food and beverages are part of it (however, your car is treated separately for insurance purposes).

As we all know, accidents happen. If you accidentally break a plate while unloading the dishwasher, it’s not that big of a deal. But if that same dishwasher malfunctions and floods your entire kitchen, that’s a much bigger problem. And if, in the event of a house fire, your entire inventory is destroyed, you’ll be left with nothing but a pile of (charred) debris.

Such a total loss can be financially devastating: Imagine having to replace everything you own, from the coffee machine to all your clothes, as well as your bed, wardrobe, and sofa, all at once. When you add it all up, you’ll quickly realise that the costs can run into tens of thousands of francs.

And to avoid being stuck with this, there’s household insurance.

What does household insurance cover?

The 'classic' household insurance comes into play when your belongings are damaged by so-called natural events such as fire, water, storms, or hail, or if you fall victim to a burglary. In these cases, the insurance will reimburse you for the replacement cost of your items.

In addition, there are several other insurance benefits you might want to consider. One example is the 'Simple theft away from home' add-on: If a pickpocket steals your phone from your pocket, it will also be covered.

Another useful add-on is 'Household contents accidental damage.' While the basic coverage of a household insurance policy only applies to damages such as fire, the comprehensive coverage also covers accidents caused by you: If you accidentally knock over your new ultra-HD television while dusting and crack the screen, that will be covered too.

Private liability insurance

Often, the household insurance is taken out in combination with private liability insurance. This is quite sensible: Private liability insurance covers damages that you accidentally cause to other people or property that doesn't belong to you – and especially in cases of personal injury with follow-up medical costs (or even permanent disability), you could quickly find yourself in financial trouble, as these costs can run into the millions.

Here's an example: You cause an accident while cycling, and the other person is so seriously injured that he or she can no longer work. You are now liable with your current and future income for the loss of earnings – but with personal liability insurance, you are protected.

Are household insurance and private liability insurance mandatory in Switzerland?

In the cantons of Nidwalden, Vaud, Fribourg, and Jura, insurance for natural hazards is mandatory – in the rest of Switzerland, home contents insurance is voluntary, as is personal liability insurance. However, both are highly recommended, as for only a few hundred francs per year, you are protected against potential financial disaster.

However, personal liability insurance is mandatory in many municipalities if you own a dog. Those who enjoy riding horses occasionally should also consider the appropriate add-ons – and for those who like something more exotic: damage caused by wild or venomous animals is generally not included in the standard coverage and must be separately insured.