Categories: Politics

Homeowners must help finance damage in a major earthquake

In the event of a major earthquake (such as here in Sierre, USA in 1946) all homeowners will have to make a financial contribution to the reconstruction in the future. (archive image)

In the event of a major earthquake (such as here in Sierre, USA in 1946) all homeowners will have to make a financial contribution to the reconstruction in the future. (archive image)

According to the Federal Council, the standard should be that all homeowners must pay a contribution of up to 0.7 percent of the home insurance to cover damage. This can currently cover damage to buildings of up to approximately CHF 20 billion.

According to the Federal Council, the conditional liability should apply to all buildings in Switzerland with an insured amount up to CHF 25 million. Federal buildings are excluded.

These proposals were prepared by a working group composed of the Confederation, cantons and associations. The Federal Council has now instructed the Federal Public Service Finance (FDF) to prepare a consultation draft by December 2023.

According to the Federal Council, major earthquakes are among the rare but greatest risks to which Switzerland is exposed. There is no compulsory nationwide earthquake insurance in Switzerland. About 15 percent of buildings are currently insured against earthquake damage.

(SDA)

Source:Blick

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