Becoming a property owner with peace of mind Thanks to building liability insurance (RCI)
Today, APCAV speaks with Christophe Gailland, head of the Verbier office of Mobilière Insurance and Pensions, a partner of our association.
Christophe, we are all familiar with private liability insurance, but there is also building liability insurance (RCI). What does it cover?
RCI is very useful for property owners as it covers claims from third parties in the event of damages and defends them against any unjustified demands.
Owning real estate is often a lifelong dream. However, it also comes with responsibilities. The law clearly defines the civil liability of property owners. Article 58, paragraph 1 of the Swiss Code of Obligations (CO), states: “The owner of a building or any other structure is liable for damage caused by construction defects or lack of maintenance.” RCI can be activated for such types of damages.
What risks are covered?
At first glance, we might not think about it, but there are numerous risks of material, bodily, and consequent economic damages around or within a building.
Here are some examples: screws on a poorly maintained balcony give way, causing someone to fall; a railing is too low, leading to a fall; an access road to a group of single-family homes, under co-ownership, causes a cyclist to fall due to a poorly placed manhole cover or a patch of ice; the playground of a condominium is poorly maintained, and a neighborhood child is injured on a swing. In all these cases, the injured party can make claims against the property owner. This may be a sole owner, several floor owners, or a community of co-owners.
Who might be affected?
If you live in your own primary or secondary single-family home, you do not need RCI, as damages are covered by private liability insurance. However, if you own an income-generating property or are not domiciled in Switzerland but own a secondary residence there, you are affected. This also applies if you own a condominium unit, as you co-own the common areas (such as access roads, elevators, garages, playgrounds, and pools). All co-owners are jointly liable for any damage that occurs in the common areas. Since private liability insurance is limited to parts for exclusive use, taking out RCI for the community of owners becomes necessary.
What are the advantages of having RCI?
Building liability insurance defends your interests and compensates the injured party. Firstly, it assesses whether and to what extent you are legally required to compensate for a damage caused.
It protects you against the economic consequences of liability under the law for damages caused to third parties. It is important to know that in most cases, your liability is engaged even in the absence of any fault on your part.
Specifically, RCI protects you against damage claims made by third parties in cases of:
- Bodily injury, including death, injury, or other harm to individuals’ health.
- Material damage, including destruction, deterioration, or loss of property.
As liability coverage involves various aspects, including the differences between RCI and private liability insurance, it is essential to evaluate each situation individually. For this reason, consulting a specialist is recommended.
For any additional questions, Christophe is at your disposal.
Mobilière Insurance and Pensions, Verbier Office, Christophe Gailland
Route de Verbier Station 57
1936 Verbier
christophe.gailland@mobiliere.ch
Interview conducted by Brigitte Borel, 19.11.2024