Switzerland is not known as an earthquake hotspot, though some seismic events do happen from time to time, inflicting a certain degree of destruction.
When it comes to material damage, a new government plan would have homeowners chip in up to 0.7 percent of the insured sum of their property.
This is the outcome of the Federal Council consultation launched last December. It had drawn up a draft proposing an obligation for homeowners to contribute to the repair of damage.
With a contribution of 0.7 percent, the Federal Council estimated the amount available for covering damage at 22 billion francs.
“The vast majority of participants in the consultation procedure approved the Federal Council’s draft and recognised the need to act in the national public interest,” the government said in a press release.
READ ALSO: Should you insure your Swiss home against earthquakes?
“Most declared themselves in favour of requiring building owners to contribute to covering the costs of repairing damage resulting from an earthquake,” it added.
Last week, the Federal Council instructed the Federal Department of Finance to draw up a plan before the end of the year on the establishment of a financing system for the repair of damage caused by earthquakes.
But the support for the proposed scheme is not unanimous
According to Markus Meier, director of the Swiss Homeowners Association, charging property owners 0.7 percent for earthquake damage is redundant ans unfair.
“There is already an insurance pool for earthquake damage within the building insurance, he told SRF public broadcaster. “There is no need for a further requirement here.”
Under the proposed plan, contributions would have to be paid in solidarity by all homeowners, and not just in the earthquake-prone areas like Valais, Basel, and Graubünden.
“We cannot let it get that far. That is an unsuitable concept,” Meier pointed out.
“We are sticking to the position that it is the individual owner’s own responsibility [to buy an earthquake insurance],” he said.
Why don’t all homeowners have earthquake insurance?
In Switzerland, very few homeowners benefit from insurance in the event of damage caused by earthquakes.
This particular coverage is generally not a standard feature in building insurance either. Only Zurich includes earthquakes in its compulsory cantonal buildings insurance, and only with a 50,000 Swiss franc deductible.
Building insurance is, however, compulsory for property owners in 19 cantons (all but Appenzell Innerrhoden, Geneva, Obwalden, Schwyz, Ticino, Uri, and Valais).
In 17 of these compulsory cantons, cantonal buildings insurance providers participate in a joint Swiss pool for earthquake insurance, according to Moneyland consumer platform.
“The compulsory buildings insurance provider in the canton of Zurich operates its own earthquake insurance pool,” Moneyland said.
On the other hand, “the compulsory buildings insurance provider in the canton of Bern does not participate in the joint earthquake insurance pool and does not maintain its own earthquake insurance pool.”
So much depends on where in Switzerland you live.
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