Insurance for tenants in Switzerland: what you actually need

The three covers and what each is for

The rows draw on two sources: the federal portal ch.ch for liability and contents, and the insurers' association SVV for legal protection.

Private liability insurance

The federal portal describes private liability insurance as basically voluntary. In practice a landlord can ask for it, and in most cantons it is mandatory for dog owners. It covers injury to people, damage to property and financial loss, and it covers the defence against claims you do not owe.

The same page lists what it leaves out: damage to you or your household, professional activity, wear, damage that was foreseeable, contagious disease and deliberate crimes. It recommends a cover of CHF 3 to 20 million, and says the deductible is usually up to CHF 5,000.

Tenants have a duty of their own to look after the flat. The law says you must use the rented property with care (Art. 257f OR) and return it in the condition that results from use under the lease (Art. 267 OR). Liability for damage you cause beyond that follows the general rule on unlawful acts (Art. 41 OR). Whether damage to the flat itself is covered depends on the policy wording, because the ch.ch page does not say. Ask the insurer or read the terms before you rely on it.

Contents insurance

ch.ch says contents insurance covers fire, natural events such as storms, water damage and burglary theft. It is often sold together with liability insurance, though you can take the two separately. Check the sum insured against what you own. A policy that is too low pays less than your loss.

Your landlord's building insurance covers the building, not your belongings. I did not find a Swiss rule that makes contents insurance compulsory for tenants. Your lease or house rules can still ask for it, so read them.

Legal protection insurance

The insurers' association describes the usual scope of private and family legal protection: damages law, criminal defence, insurance law including social insurance, employment law, tenancy law, other contract law and neighbour and property law. Insurers pay for internal case handling, lawyers' fees, expert opinions, court costs and party compensation imposed on the insured. Scope differs between insurers, so the terms decide. That page is dated 6 November 2019, so check current terms with your insurer.

Tenants' associations offer another route. The Zurich association's page says its legal protection, run through a partner insurer, covers costs if you have been a member for at least 60 days at the time of the event, and that for events from 2021 you pay 10% of the costs, at least CHF 100 and at most CHF 500. Other cantonal associations may have different rules. I only checked Zurich.

What a rent dispute costs without cover

Most rent disputes start at a conciliation authority. A civil claim usually requires an attempt at conciliation first (Art. 197 ZPO), and for rent disputes the authority consists of a chair and an equal number of tenant and landlord representatives (Art. 200(1)).

In conciliation, no party compensation is awarded (Art. 113(1) ZPO), and no court costs are charged in disputes about residential or commercial rent (Art. 113(2)(c)). If the case goes to court, it is different. Article 114 lists the disputes where no court costs are charged in the decision procedure, and rent is not on that list (employment disputes up to CHF 30,000 are). The general rule is that the losing party pays the costs (Art. 106 ZPO).

So the cheap stage is the first one. The expensive stage is court, and that is the stage where legal protection insurance or a tenants' association plan matters.

A timing point to watch

Some deadlines in tenancy law are short. If a landlord raises the rent or changes the lease terms to your disadvantage, you can challenge it within 30 days of receiving the notice (Art. 270b OR). A policy or association plan with a 60-day waiting period would not cover an event in that window if you joined only after receiving the notice. That is my reading of the two numbers, not a statement from either source. It means the cover is worth arranging before you need it.

Before you sign or renew

• Does your lease or the house rules ask for liability or contents insurance?
• Does the liability sum reach at least the CHF 3 to 20 million range the federal portal recommends?
• What is the deductible, and does the policy cover damage to the rented flat itself?
• Is the contents sum insured close to what your belongings would cost to replace?
• For legal protection: is tenancy law listed, and is there a waiting period?
• If you join a tenants' association, how long must you be a member before a case is covered, and what share of costs do you pay?

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