Insurance for private individuals: the complete guide

Personal liability: voluntary — and what it covers

There is no general legal obligation to hold personal liability insurance in Switzerland. The insurance covers damage that the insured person or family members living in the household cause to third parties — to persons or property — and fends off unjustified claims. Sums insured and exclusions are contractual; there are no statutory requirements for them.

Sector-specific insurance obligations do exist:

• Dog owners: In many cantons, liability insurance for the dog is required — in the canton of Zurich, for example, with a sum insured of at least 1 million francs (Zurich Dog Act, s. 6).
• Hunters: liability insurance is mandatory, with a minimum sum insured of 2 million francs (JSG Art. 16, JSV Art. 14).
• Vehicle keepers: regulated separately via motor vehicle liability (section below).

Since 2022, injured parties can claim directly against the liability insurer of the person who caused the damage (direct right of action, VVG Art. 60 para. 1bis). Rental agreements often require proof of personal liability insurance — that is a contractual, not a legal obligation.

Household contents: what is covered — and the underinsurance trap

Household contents insurance is in principle voluntary. It covers the movable property of the household, typically in modules: fire and natural hazards, theft, water damage, glass breakage. The exact scope is contractual.

Wherever a private insurer covers household contents against fire, natural-hazard cover is included by law — at a tariff that is uniform and binding for all insurers (VAG Art. 33). Exactly nine hazards are covered: high water, flooding, storm (wind of 75 km/h or more), hail, avalanches, snow pressure, rockfall, falling stones and landslides. NOT considered natural hazards are, among others, earthquakes, groundwater and sewer backflow (AVO Art. 173). The deductible for household contents is 500 francs per event (AVO Art. 175).

In four cantons, household contents must be insured:

If the sum insured is below the actual value, the benefit can be reduced proportionally in the event of a claim (underinsurance, Art. 51a VVG).

Building insurance: regulated by canton

Whether and where a building must be insured is determined by the canton. There are three groups:

With private insurers, the natural-hazard link applies to buildings too: fire cover only together with natural-hazard cover, at a uniform tariff (VAG Art. 33, AVO Art. 171). Deductible for residential buildings: 10 percent of the compensation, at least 1,000 and at most 10,000 francs (AVO Art. 175).

Motor vehicle: liability is mandatory, comprehensive cover is a choice

No motor vehicle may be put into public circulation without liability insurance (SVG Art. 63). The insurance must cover personal injury and property damage together with at least 5 million francs per accident event (VVV Art. 3).

Partial and full comprehensive cover (casco) are not required by law. Partial casco usually covers damage to your own vehicle without your own fault (such as theft, glass breakage, natural hazards, marten bites, collisions with animals); full casco additionally covers self-inflicted collision damage. The exact scope is contractual.

For leased vehicles, the leasing contract usually requires full comprehensive cover — a contractual condition, not a legal obligation.

Accident: through the employer or through health insurance

Accident cover follows a clear system — the employment situation is decisive:

1. Employed, 8 hours per week or more

   Insured through the employer under the UVG — occupational and non-occupational accidents (UVG Art. 1a, UVV Art. 13). In this case, the accident cover of the health insurance can be suspended; the premium is reduced accordingly (KVG Art. 8).

2. Employed, under 8 hours per week

   Only occupational accidents and accidents on the way to work are covered through the employer; non-occupational accidents run through basic health insurance.

3. Not employed, or self-employed without voluntary UVG insurance

   Accidents are automatically covered through basic health insurance (KVG Art. 1a para. 2) — no separate inclusion is needed.

4. After the job ends

   UVG cover continues until the 31st day after entitlement to at least half pay ends; it can be extended by up to 6 months via an interim agreement (UVG Art. 3). After that, notifying the health insurer matters — details in the in-depth article.

In depth: suspending the health insurer's accident cover — and the notification trap when a job ends →

Legal protection: what the insurance is

Legal protection insurance is voluntary. Within the agreed scope, it covers lawyer, court and procedural costs and usually distinguishes traffic and private legal protection; waiting periods and exclusions are contractual.

The free choice of legal representation is anchored in law: the contract must grant it as soon as representation is required for court or administrative proceedings, or where a conflict of interest exists (AVO Art. 167). If the insurer declines a benefit as lacking prospects of success, the ordinance provides for a special review procedure (AVO Art. 169).

Legal protection typically becomes relevant in situations such as disputes arising from tenancy or employment, traffic accidents with contested liability, or disagreements with insurers. Whether the insurance suits a specific situation is individual.

Travel insurance: modules and double cover

Travel insurance is voluntary and consists of modules — most commonly cancellation costs (before the trip) and assistance with repatriation (during the trip); luggage or rental-car deductible waivers are sometimes added. The scope is purely contractual.

Some modules are already covered through other policies (e.g. credit card, household contents, health insurance) — double cover is common with travel insurance and does not pay twice in the event of a claim.

Life insurance: the forms within the pension system

Life insurance is voluntary and covers two fundamentally different things: risk — an agreed benefit on death or disability — or saving, i.e. capital accumulation with an insurance component, often as an endowment (mixed) life insurance.

Both forms can be held within tied pension provision (pillar 3a) or free provision (pillar 3b) — with different tax rules and commitments. The differences are set out neutrally in the pension guides.

One contractual particularity applies: life insurance is exempt from the VVG's ordinary right of termination (Art. 35a para. 3). For savings forms, the contract and the surrender value determine the exit conditions; what an early surrender means depends on the product and the contract.

Pillar 3a or 3b? The differences at a glance →

Planning retirement: the complete guide →

The VVG ground rules: deadlines and rights for all policies

All private insurance contracts — not basic health insurance under the KVG — are governed by the Insurance Contract Act (VVG, revised as of 1.1.2022). The most important deadlines and rights, as of 2026:

There is NO general statutory right of termination on a premium increase — whether and how a contract can then be terminated is governed by the policy conditions (GTC) of the product.

Which covers suit a specific life situation is individual — we are happy to discuss your situation, with no obligation.