Home contents insurance: the correct sum insured
Christmas is a time for giving presents and purchasing expensive new gadgets. But is the amount insured under your home contents insurance policy still correct?
You should check your inventory from time to time and make sure you are not underinsured, as this can lead to nasty surprises in the event of an emergency.
We have compiled a checklist for you that allows you to easily calculate and check the current value of your belongings.
Why is it important to be insured for the right amount?
You are only properly covered if you estimate the value of your household effects correctly. If the sum insured is higher than the actual value, your premium will be too high. If the sum is too low, you will be underinsured. In the event of a claim, this can result in unnecessary reductions in the payout you receive.
What is underinsurance?
You are underinsured if the insured amount specified in your insurance policy is lower than the cost of replacing all your goods at their current value as new. In the event of a partial claim, the payout is reduced proportionally.
An example of underinsurance
If it costs CHF 100,000 to replace all your household effects (furniture, clothes, etc.), but a sum of only CHF 70,000 is specified in your insurance policy, then your household effects are only insured up to 70%. In the event of a partial claim, the payout is reduced proportionally, i.e. by 30%.
Underinsurance in the event of a partial damage claim
If a claim is made for CHF 20,000, the payout will be reduced by 30%, i.e. the payout will only be CHF 14,000 instead of CHF 20,000, i.e. you will only be compensated for 70% of the claim.
What is included in your household effects?
Household effects - simply explained
Your household effects include all items that could fly out of your house or flat if you turned the building upside down.
- Machines & appliances: vacuum cleaners, irons, sewing machines, food processors, etc.
- Home electronics: PC, laptop, tablet, smartphone, TV, set-top box, etc.
- Entertainment: CDs, DVDs, Blu-ray discs, etc.
- Hobby/leisure: photographic, film and video equipment, hobby workshop, model building, etc.
- Sport: Sports equipment, skis, bicycles, e-bikes, etc.
- Travel/camping: suitcases, travel bags, binoculars, camping gear, etc.
- Tableware: dishes, dinner service, glasses, kitchen utensils, pans, cutlery, etc.
- Linen: Table, kitchen and bath linen, etc.
- Bedding: Mattresses, duvets, pillows, woollen blankets, sheets, etc.
- Motor vehicle accessories: (not including items permanently fixed to the vehicle) ski racks, tyres, etc.
- Clothes: belonging to all residents
- Shoes: belonging to all residents
- Third-party property: entrusted items, guests' belongings, etc.
- Other items: groceries, drinks, fuel, leased or rented items, etc. (if not already listed)
- Structural equipment and machines (installed or purchased by the tenant, e.g. washing machine, refrigerators, dishwashers, tumble dryers, and not insured with the building)
- Non-permanent installations such as garden sheds and greenhouses
Please note: this list is not exhaustive.
Why do I need home contents insurance?
Home contents insurance is not compulsory in Switzerland. However, some landlords require that tenants indemnify themselves financially against "tenant damage". Even if your landlord does not require you to have home contents insurance, the loss of your belongings due to fire, burglary or water damage can quickly become a financial burden. Unfortunately, no insurance policy can completely prevent such an event from happening, but thanks to prevention and home contents insurance, you can protect yourself against the financial consequences.
Think about the value of the goods you have accumulated in your home over the years. To work out how much to insure your home contents for, use our checklist and go round your house or flat room by room, noting down the corresponding values. When you do this, it quickly becomes clear that all the items together would cost quite a tidy sum if you suddenly had to replace them in one go.
Amending the sum insured on an existing baloisedirect.ch home contents insurance policy
If your home contents are already insured with baloisedirect.ch and you would like additional cover or to amend your sum insured upwards or downwards, you can apply to do this via our Service Link "Changing your insurance cover"
At the third step under "policyholder" in answer to the questions, state on your application that you would like to replace an existing insurance policy with Baloise. You will receive your amended policy shortly thereafter by post.