What insurance do I need as a landlord?

The obligation: Building insurance

The foundation of any insurance for landlords is the protection of the property. In Switzerland (except in a few cantons such as Geneva, Ticino, Valais, and Appenzell Innerrhoden), building insurance against fire and natural hazards is mandatory.

• What is covered? Damage caused by fire, smoke, lightning, flood, storm or hail.
• The provider: In 19 cantons (e.g., Zurich, Bern), this is handled by the cantonal building insurance (monopoly). In the so-called "GUSTAVO" cantons, you as a landlord must take out this insurance with private providers.

This insurance, provided to the landlord, covers the building's reconstruction value. Important: It usually does not cover water damage caused by defective pipes inside. This is a common misconception.

The indispensable one: Building liability insurance

If there's one type of voluntary insurance that you absolutely must have as a landlord, then this is it.

As the owner, you are liable according to Art. 58 of the Swiss Code of Obligations for damages caused by faulty construction or inadequate maintenance of your building.

• The scenario: A railing breaks, a roof avalanche occurs, or the light in the stairwell goes out and someone falls.
• Liability: You are liable regardless of fault. The injured party does not have to prove negligence on your part. They only have to prove that the defect in the building caused the damage.

landlord liability insurance , you'll be responsible for paying medical expenses, lost wages, and compensation out of your own pocket. This insurance also protects you against unjustified claims (passive legal protection). For condominium owners, this coverage is often arranged collectively through the owners' association; for sole owners, it's a mandatory separate landlord insurance policy .

The "second rent": Building water insurance

Water is the number one enemy of buildings. The cantonal building insurance covers flood damage (natural hazard damage), but not burst pipes inside the building. This is where building water damage insurance comes in, an important type of insurance for landlords .

• What is covered? Damage caused by leaking water from pipes, leaky roofs (rainwater), sewage backup, or search costs (chiseling open walls) to find the leak.

Since water damage is extremely expensive and drying equipment consumes a lot of electricity, this insurance is essential for landlords. It's often offered as an add-on to private building insurance. Without this insurance, you'll be left to deal with damage caused by blocked pipes.

Protection against vacancy: Rent loss insurance

What happens if the house burns down or becomes uninhabitable due to water damage? The building insurance pays for the reconstruction. But who pays the rent you lose during the 12 months of renovations?

This is where the loss of rental income comes into play.

• The function: This insurance, as a landlord, compensates for lost rental income if the premises are unusable due to an insured damage (fire, water).
• When is it worthwhile? If you rely on rental income to pay your mortgage interest. If you have sufficient reserves, you might be able to forgo this specific insurance as a landlord . However, check whether it's already included in your building insurance (often for 12 to 24 months).

Glass breakage and surroundings

Is glass breakage insurance worthwhile for landlords ?

• Building glazing: windows, glass doors, conservatories.
• Furniture glazing: glass ceramic hob, sinks.

Many rental agreements stipulate that the tenant is liable for broken glass (via their personal liability insurance). However, there are loopholes (e.g., glass breakage caused by severe weather or unknown third parties). Landlord insurance covering building glass is often inexpensive and prevents disputes if a crack appears in a panoramic window and no one wants to take responsibility. Property insurance (gardens, fences) is also worth considering if you have an expensive garden.

The legal dispute: Landlord legal protection

Disputes concerning tenancy law are on the rise. Terminations due to owner occupancy, evictions of tenants who don't pay rent, or disagreements over utility bills often end up in court.

Landlord legal protection insurance is a specialized insurance policy for landlords .

• Standard legal protection: Your private legal protection insurance usually does not cover disputes concerning rentals , or only to a very limited extent.
• The benefit: This landlord insurance covers legal fees, court costs, and expert opinions. Especially if you own multiple units, the potential for conflict is statistically high. Landlords who take out legal insurance can handle conflicts with greater composure.

Landlord's liability insurance for movable property

Are you renting out furnished apartments? Then you need contents insurance as your landlord's insurance . Standard building insurance only covers items permanently attached to the building. A sofa or fitted kitchen (depending on the definition) in a furnished apartment requires separate coverage. This landlord insurance protects your property from fire and water damage, even if it's located in the tenant's apartment.

Checklist: Your insurance portfolio

In summary, the insurance portfolio for landlords can be divided into three levels:

• Stage 1 (The Must):
• Cantonal building insurance (fire/natural hazards).
• Building liability insurance (protection against multi-million dollar lawsuits).

• Building water damage insurance (protection against expensive burst pipes).
• Glass breakage insurance (building glass).

• Loss of rental income (if not included in level 1).
• Landlord legal protection.
• Environmental insurance.

Every insurance policy for landlords costs premiums and reduces returns. But lacking insurance in the event of damage can mean financial ruin for a landlord.

Conclusion

The question "Which insurance policies do I need as a landlord?" is a matter of risk management. While you usually don't have a choice regarding building insurance (fire/natural hazards), building liability insurance is the most important voluntary insurance for landlords . It protects you from the strict liability of property owners. You should absolutely supplement this basic coverage with water damage insurance, as water damage is statistically more frequent than fires.

Review your policies every few years. Has the building's value increased due to renovations? If so, your landlord 's insurance coverage needs to be adjusted to avoid underinsurance. Good landlord insurance is an invisible shield that allows you to focus on what matters most: managing your property.

If you want to analyze how the cost of your landlord insurance affects your overall return on investment, or which risks are particularly high at your specific location (e.g., flood zone), Loft offers neutral data to optimize your security strategy.

Glossary

• Owner's liability: The legal obligation (Art. 58 of the Swiss Code of Obligations) of the owner to be liable for damages caused by defects in the building. Building liability insurance is the necessary insurance for landlords in this regard .
• Natural hazard damage: Damage caused by natural forces such as storms, hail, or floods. This is usually covered by mandatory building insurance and forms the basis of insurance for landlords .
• Loss of rental income: The financial loss when rent payments are not received due to damage. Appropriate insurance for landlords compensates for this loss.
• Building water insurance: An additional insurance policy for damage caused by burst pipes inside the building, which is usually not covered by the cantonal insurance company as the landlord .
• GUSTAVO cantons: The cantons (GE, UR, SZ, TI, AI, VS, OW) in which there is no state monopoly and building insurance (fire) must be taken out with private providers – an important aspect when choosing insurance as a landlord .