A good contract avoids surprises during the estimation and work.

Building insurance aims to protect the real estate assets of an SME by covering, according to the contract and the cantonal framework, damage to the building and its fixed elements.

In Switzerland, the organization of certain insurance coverages, particularly those related to fire and natural events, can vary from canton to canton, with different systems between institutions and the private market.

For an SME in Geneva, the logic is therefore to build a coherent set: what is covered “basically”, what needs to be supplemented, and how the owner’s responsibilities and indirect losses are dealt with.

Generally, building insurance covers the restoration of the building after an insured loss: walls, roof, fixed installations, fittings attached to the building, according to the contractual definition.

Extensions are frequent: water damage (leaks, ruptures, backflows depending on conditions), broken glass, malicious acts, and sometimes specific technical elements (heating, ventilation, photovoltaic, elevator installations) depending on the assembly.

The key issue is the insured value. Underinsurance can lead to a reduction in compensation, and overinsurance offers no benefit.

The assessment method may vary, and an update is required in the event of work, extension or renovation.

The key points to consider are exclusions, deductibles, and sub-limits. Certain types of damage are often excluded or limited: wear and tear, lack of maintenance, gradual water infiltration, construction defects, or damage occurring outside the insured events.

Water damage is a sensitive area: contracts often distinguish between the cause, the origin, the consequential damages, and the prevention obligations.

Natural events and fire can be dealt with differently depending on the applicable framework, making coordination essential if multiple police forces are involved.

Deductibles may vary depending on the coverage, and sub-limits may apply to certain additional costs (debris removal, sanitation, leak detection, emergency measures) depending on the insurer.

Another key area of concern is the owner's civil liability (often called building liability insurance, depending on the market structure). A building claim can also involve a civil liability claim: water damage to a neighbor's property, falling debris, or injury to a third party. SMEs must understand the distinction between damage to the building itself and damage caused to others (civil liability), and how claims are handled between insurers.

To choose the right level of coverage, a simple framework works well.

First, clarify your status: owner-occupier, landlord, co-ownership, mixed.

Secondly, establish a reliable insured value, and document the plans and renovations.

Third, select the extensions based on your actual risk: water, glass breakage, technical installations, site-related events.

Fourth, address indirect costs: loss of rent, additional expenses, emergency measures, and business continuity.

A useful mini-list includes checking the definition of the insured building, the valuation method, water and maintenance exclusions, deductibles per guarantee, and coordination with the building liability insurance.

Mage & Associates can assist you with a policy review, a site risk analysis, and a clarification of responsibilities between owners, tenants, and service providers. The goal is to have a clear and operational contract, ready for the day of a claim, without paying for unnecessary coverage.