by Last week, the government in Bern broadly supported a plan to force all property owners to contribute to the cost of earthquake repair. This week, a Swiss homeowners association rejected the idea, reported SRF. Earthquake © Olga Demina | Dreamstime.comThe government plan is a response to the attitude of many home owners towards insurance. Only 15% of buildings are insured against earthquakes in Switzerland, a nation at risk, according to a government estimate. If some homeowners won’t step up and pay for earthquake insurance then they should all be forced to pay when an earthquake hits whether their building is damaged or not, is the logic. Some politicians view the scheme as innovative. There are no premiums but instead a (big) bill when an earthquake hits – 0.7% of a property’s
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Last week, the government in Bern broadly supported a plan to force all property owners to contribute to the cost of earthquake repair. This week, a Swiss homeowners association rejected the idea, reported SRF.
The government plan is a response to the attitude of many home owners towards insurance. Only 15% of buildings are insured against earthquakes in Switzerland, a nation at risk, according to a government estimate. If some homeowners won’t step up and pay for earthquake insurance then they should all be forced to pay when an earthquake hits whether their building is damaged or not, is the logic. Some politicians view the scheme as innovative. There are no premiums but instead a (big) bill when an earthquake hits – 0.7% of a property’s insured value would be demanded from all property owners in the event of an earthquake.
However, the Homeowners Association does not agree. Director Markus Meier told SRF that private insurance companies provide enough competitive insurance offers. There is no need for a mandatory requirement.
Meier also questions the federal government’s figures. He thinks some insurance policies are not in the data. He also thinks home owners should be left to make their own decisions. Those who fail to insure and suffer earthquake damage will bear the cost of repair. In addition, the association director thinks earthquake insurance is a cantonal matter, not a federal one. Some cantons have already made earthquake insurance mandatory, he said.
According to Meier, the subject has been discussed repeatedly and never delivered anything. He predicts that this scheme will fail to materialise too.
More on this:
SRF article (in German)
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