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We are busy renovating a beautiful old Swiss farmhouse and have various freelancers and professionals doing different work on the house. What can we do to make sure we are financially covered against all the possible risks?
Hi there,
There are a number of insruance consideration which apply when constructing, remodeling or renovating a property:
1. Most cantons in Switzerland require that you take out interim buildings insurance which covers your construction against fire and natural hazards until it is complete.
2. Getting principal's liability insurance is recommended because constructing or renovating a building is a risky task. Construction work could result in damages to other people's property. For example, a neighbors home or driveway could be damaged as a result of earth removals or heavy vibrations. This insurance also covers liabilty against the cost of damages inflicted on a third party individual or their property by your building (a loose roof tile falling onto a craftsman or a visitor's car, for example).
3. Builder's risk insurance (also called contractor's risk insurance) helps protect your wallet from the cost of damages to your building through theft, vandalism or unexpected construction accidents (a collapsed wall for example) for which contractors cannot be held liable.
4. Having personal liablity insurance protects you from the financial consequences of damages you inflict on other people's property in the course of your work.
5. You will want to make sure that all contractors involved in the construction or remodeling have commercial liability insurance. That way if a contractor damages any part of your property or injurs anyone in the course of their work, their insurance can pay for the damages.
6. Contractors working for you should also have construction liability insurance. This covers the costs of any mistakes made by contractors which are discovered after the job is complete.
7. Once your construction is complete (in the case of a new building), you will have to take out buildings insurance in most cantons. You can find out more in our guide to buildings insurance in Switzerland.
8. If you do not already have structural glass insurance, getting this ahead of renovation or remodeling is recommended - particularly if the building has a lot of windows or other glass components.
Best regards from Moneyguru
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