Is liability insurance mandatory in all cantons for tenants ?

Although widely recommended, liability insurance (RC) is not mandatory in all Swiss cantons for tenants. It's somewhat like a rule of the game that changes depending on where you live!

For example, in the canton of Vaud, liability insurance is a must—you really can't play without it! But in other cantons, it's a bit more flexible. Even if it's not always a legal requirement, many landlords and property management companies will still ask you to have liability insurance before handing over the keys to your new home.

At Firstcaution, we strongly recommend taking out liability insurance, regardless of the canton you live in. It's your safety net in case of mishaps, like spilling red wine on the living room's white carpet. Plus, it allows you to live peacefully, knowing you're covered if an accident occurs.

In summary, even if it's not mandatory everywhere, it's an essential protection we strongly advise you to have in place.

Tenant's RC vs. Landlord's RC: What's the Difference ?

Landlord's RC: Imagine you are a landlord and a tile from your roof falls on a neighbor's car or faulty stairs cause a fall—that's where the landlord's RC comes into play.

Tenant's RC: Now, let's put ourselves in the shoes of the tenant. You're doing some DIY, and while hanging a shelf, you accidentally drill into a pipe. Result: expensive repairs that are the landlord's responsibility, but fortunately, your tenant's RC covers this type of damage.

Why is tenant's liability insurance essential ?

Tenant's liability insurance saves you from having to pay significant amounts to repair damages that you may cause in the dwelling. It distinguishes between damage related to normal wear and tear (like paint peeling over time), which is the landlord's responsibility, and accidents or negligence (like a hole in the wall after a drilling mishap), which are your responsibility.

Concrete examples:

• Disaster scenario: You drill into a wall and damage a pipe. The RC insurance steps in for the repairs, avoiding a hefty bill.
• Little artist at work: Your child decides to express their artistic talent on the living room wall with a permanent marker? No worries, the RC insurance will cover this type of damage, as a child is not aware of the consequences of their actions.
• Beware of carelessness: However, if you leave a window open during a storm and the water damages the parquet, this could be considered a lack of care on your part and thus not covered.

RC or Rent Guarantee: What's the Difference ?

You might wonder: "What's the difference between RC insurance and a rent guarantee?"

RC (liability insurance): This protects you if you cause damage to other people or property that does not belong to you. For example, if you accidentally break a window or damage the floor of your apartment.

Rent guarantee: This is a sum of money you deposit (often in the form of a bank deposit or insurance) to cover potential debts to the landlord at the end of the lease, such as unpaid rent or necessary repairs. In Switzerland, this guarantee cannot exceed three months' rent for a residential lease. At the end of the lease, if there are unpaid rents or damages found in the apartment, the rent guarantee will be activated by the landlord. You can then use your RC to reimburse justified expenses.

In summary, RC insurance protects you against claims for damages you cause, while the rent guarantee protects the landlord in case of problems at the end of your rental contract.

What insurances cover what types of damage ?

• Tenant's RC insurance: Covers damages you cause to property that does not belong to you. Example: You spill paint on the landlord's carpet? RC insurance takes care of the costs.
• Household insurance: Protects your personal belongings (furniture, electronic devices, clothing, etc.) against risks such as fire, water damage, natural disasters, and theft. Example: If a fire breaks out at your place and destroys your sofa, your household insurance will compensate you.
• Building insurance: Covers damages to the building, including built-in equipment like the kitchen or bathroom, in case of a disaster. Example: If a storm damages the roof of the building, building insurance covers the repairs.

Important reminder: fire insurance in the canton of Vaud

In some Swiss cantons, like Vaud, fire insurance is mandatory for everyone, tenants and landlords alike. You must take it out with the ECA (Cantonal Establishment of Insurance against Fire and Natural Elements) to be covered in case of a disaster.

RC insurance for commercial leases: What tenants need to know

If you are renting a commercial space, it is essential to have liability insurance tailored to your activity. Unlike residential leases, where RC insurance generally covers damages you might cause to the apartment or house, RC for a commercial lease takes into account the risks associated with your professional activity. For example, if a customer gets injured in your shop or if equipment

The Cost of Liability Insurance in Switzerland: What to Expect

The cost of liability insurance (RC) for tenants in Switzerland varies depending on several factors, such as the size of the accommodation, the desired coverage, and sometimes the canton in which you reside. Generally, the annual premiums for tenant liability insurance range between 100 and 200 CHF per year for standard coverage. For commercial leases, prices can be higher depending on the business activity and associated risks, with premiums ranging from 300 to 1,000 CHF or more per year. It is advisable to compare several offers to find the one that best suits your needs and budget.

List of Main Liability Insurance Providers in Switzerland

Here is a list of some of the main liability insurance providers in Switzerland, with Vaudoise Assurance and Bâloise Assurance leading the list, as recommended by Firstcaution:

• Vaudoise Assurance
  Recommended by Firstcaution. Offers solid liability coverage for residential tenants and professionals. Flexible options and quality customer service make it a preferred choice.
• Bâloise Assurance
  Recommended by Firstcaution. Provides liability insurance solutions for individuals and businesses, with policies tailored to the specific needs of tenants and commercial tenants.
• La Mobilière
  Offers liability insurance for tenants and property owners, as well as solutions tailored to businesses.
• AXA
  Provides liability insurance for individuals and businesses, with a wide range of customizable coverages.
• Allianz Suisse
  Offers liability insurance for tenants and property owners, as well as specialized policies for commercial leases.
• Generali Suisse
  Provides liability insurance solutions tailored to the needs of individuals and businesses, with extensive coverage.
• Helvetia
  Offers liability insurance for residential tenants and specific policies for businesses.
• Zurich
  Provides comprehensive liability insurance for tenants and property owners, with flexible options for commercial leases.

It is recommended to contact these providers to obtain personalized quotes and compare offers before making your choice.

And if you have any questions or need a helping hand to find your way, our customer service team is here for you with a smile !

Don't hesitate to contact us, we'll be happy to help you navigate the world of insurance and find the best solution for you.