Building insurance: definition

Building insurance (often fire + natural hazards) covers the property against certain major losses such as fire, lightning or flooding.

Building insurance and your obligations

In most cantons, this insurance is mandatory and often managed by a public institution. It protects both the owner and the lender (bank or insurer), which relies on this cover to secure its collateral.

What does building insurance cover, for example?

For example, a fire partially destroys your house. The building insurer covers reconstruction costs under the contract terms, so you do not end up repaying a mortgage on a severely damaged property without compensation.