Index-based insurance

When reviewing the details of a household insurance before applying, I noticed that this insurance is based on an index. Is this normal? What does the index affect?

Hi there,

Most Swiss houshold insurance policies provide benefits based on one of two indexes: the Swiss Household Value Index published by the Swiss Insurance Association (SVV / ASA) or the Swiss Consumer Price Index published by the Federal Statistical Ofice.

As the linked index increases or decreases, the coverage provided by these policies is adjusted to match. This also affects the premiums you pay, as a significant increase in a price index may result in your paying a higher annual premium.

On the other hand, using insurance which follows an price index helps insure that your coverage matches current prices.

The most important thing is that the coverage provided adequately covers the cost of replacing your property. At the same time, you should make sure you are not overinsured, as this leads to your paying for coverage which you don't need.

Premiums are also an important factor. Some insurers charge higher premiums than others for almost identical coverage.

Best regards from Moneyguru

More on this topic:
Household insurance explained
Overinsurance explained
Household insurance comparison