Household insurance 2026: how to avoid costly underinsurance

Mrs Keller only wanted to refresh her living room. A new dining table, a modern TV, an e-bike for commuting. It wasn’t until water damage affected her flat that she realised her household contents were now worth far more than the amount she had insured for years earlier. The result? A significant reduction in benefits and high costs she had to cover herself.

The replacement costs of electronic devices and technical equipment have increased in recent years. As a result, the risk of underinsurance may increase if the insured amount is not reviewed regularly.

Your household insurance protects everything you would take with you if you moved house. This includes:

This means that, in the event of a claim, you receive the amount needed today to replace the item with a new one of the same type and quality.

Many people confuse these three types of insurance or are unsure which policy covers which type of damage. In reality, they complement each other perfectly and together ensure comprehensive protection for your home and everyday life.

Together, these three forms of insurance create a strong safety net: building insurance protects the property, household insurance covers your personal belongings, and personal liability insurance shields you from financial risks if something happens to a third party. This gives you the reassurance that – whether damage occurs to the building, to your possessions or to others – you are well protected.

A complete overview of useful personal, property and financial insurance options for private individuals can be found in our dedicated article on the topic.

Underinsurance occurs when the actual replacement value of your household contents is higher than the insured sum stated in your policy. Your belongings are then not fully covered, and the insurer is entitled to reduce the payout proportionally. In other words: the greater the gap, the less you receive in the event of a claim.

Underinsurance often arises due to new purchases or rising prices when the insured sum is not updated regularly. This is why reviewing your household contents value once a year is highly advisable – especially as electronics, furniture and sports equipment continue to become more expensive.

Underinsurance often becomes visible only when a claim occurs. In household insurance, the principle of proportionality applies: the insurer pays the claim only in the same proportion as the ratio between the true value and the insured sum.

This means: the greater the underinsurance, the more substantial the reduction in benefits – and this applies to every claim, including small partial or individual losses.

To give you a clear picture of how significantly underinsurance can impact you financially, the following example reflects a very common situation in Swiss households.

The four examples below illustrate how significantly underinsurance can affect the payout from your household insurance.

Some insurers may partially waive benefit reductions caused by underinsurance for smaller claims. Whether such a provision applies depends on the specific insurance product.

Even seemingly minor incidents – water damage, burglary, a fire or a damaged e-bike – can quickly amount to several thousand francs. If your insurer then only covers half of it, every claim becomes a major financial burden.

This is why it is so important to regularly update your household contents value. Especially in 2026, as electronics, furniture and sports equipment have become considerably more expensive due to rising replacement costs.

In 2026, replacement costs for electronics, furniture, bicycles and especially e-bikes will rise significantly. This increase will happen faster than many people expect. At the same time, households today own more high-quality devices than just a few years ago, and extreme weather events are causing damage more frequently. If you do not regularly update the insured sum in your household insurance, you can easily – and often without realising it – slip into underinsurance.

There are several ways to determine the value of your household contents. The more accurate the calculation, the lower the risk of underinsurance.

Many insurers use guideline values per square metre of living space to obtain an initial estimate of household contents value. This method provides a useful starting point, but it often does not adequately reflect valuable furniture, electronics, e-bikes or collections.

✔ quick and straightforward
✘ only a rough estimate

An inventory list records all household contents together with their current replacement value. Although it requires more effort, it provides the most reliable results and helps prevent underinsurance.

✔ high level of accuracy
✘ more time-consuming

For households with particularly valuable possessions, a professional valuation can be worthwhile. This may be especially relevant for:

A professional assessment provides greater clarity regarding the true replacement value and helps determine an appropriate insured amount.

Review the value of your household contents regularly, especially after major purchases or when replacement costs increase significantly. This helps ensure that your insured amount reflects the actual value of your household contents and reduces the risk of claim reductions in the event of a loss.

Source: Mobiliar Ratgeber: Bestimmen Sie den Wert Ihres Hausrats (currently available in German, French and Italian only)

In practice, it becomes clear that it is often the most valuable items that are not included in the insured amount. And this is exactly what leads to underinsurance. Typical «forgotten items» include:

Mobiliar points out that all movable items – including hobby equipment and valuables – must be included in the correct household contents value.

Depending on your lifestyle and the value of your household contents, certain additional cover options can complement your household insurance in a meaningful way. They enhance protection where claims are now particularly frequent or where replacement costs are very high.

Extends protection to items stolen outside your home – such as bicycles, e-bikes, mobile phones and laptops; this is particularly relevant to commuters and to anyone who is frequently on the move.

An important cover due to the increase in extreme weather events such as flooding, storms, hail or mudslides. These incidents can cause significant costs, especially in basements and outdoor areas. You can learn more about handling hail damage in our dedicated article.

It covers damage to glass tables, display cabinets, mirrors and glass-ceramic hobs. Ideal for households with high-quality surfaces or design-oriented interiors. We recommend reading our detailed article on glass breakage for further insights.

Covers damage caused by leaking pipes, faulty appliances or overflowing washing machines. One of the most common types of claims in recent years.

Important for damage caused by carelessness, such as a burning candle, an unattended stove or a tap not fully closed. This cover often prevents substantial out-of-pocket costs.

The best protection starts with accurately documenting your household contents. With these simple habits, you remain properly insured over the long term:

Photograph your rooms, cupboards and drawers. This not only helps determine the correct value of your household contents but also provides clear evidence of ownership in the event of a claim.

For a detailed calculation of your insured amount, Mobiliar provides a practical calculator with step-by-step instructions (currently available in German, French and Italian only):

A correctly calculated household insurance policy reliably protects you from high costs and unpleasant surprises. We are happy to help you by providing you with personal, tailored advice. You can find more information about our insurance solutions for private individuals on our dedicated offers page.

✔ We check the value of your household contents free of charge.
✔ We help you avoid underinsurance with confidence.
✔ We provide independent, clear and personal advice.

Ideally, you should review the value of your household contents on a regular basis. Updates are particularly advisable after major purchases, such as furniture, electronic devices, e-bikes or sports equipment. This helps ensure that the insured amount reflects the current replacement value of your household contents.

Compare the current replacement value of all your household contents with the insured amount stated in your policy. If you have acquired many new possessions in recent years or replacement costs have increased, there may be a risk of underinsurance. In the event of a claim, this could lead to reduced benefits.

Yes. The size of a property is often used as an initial reference when determining the insured amount. However, floor space alone does not necessarily reflect the true value of your household contents. High-quality furniture, electronics, artwork or e-bikes may significantly increase the level of cover required.

Jewellery, luxury watches, works of art, collections and other particularly valuable possessions often require a specific assessment. Depending on the insurance product, compensation limits or additional requirements may apply. An individual review is therefore recommended.

Yes. Household insurance generally covers partial losses, for example following water damage, burglary or damage to individual items. However, if underinsurance exists, the compensation may be reduced proportionately.

Depending on the model and the insurance policy, e-bikes may be covered under household insurance. In the event of theft away from home, additional cover for simple theft away from the insured premises is often required. The exact cover and benefits depend on the individual policy.

An insured amount that is too high does not usually result in higher compensation in the event of a claim. However, it may lead to unnecessarily high premiums. The insured amount should therefore be aligned as closely as possible with the actual replacement value of your household contents.

That depends on your personal circumstances. Commonly chosen extensions include theft away from home, glass breakage cover, gross negligence cover, and specific protection for e-bikes or valuable possessions. The most appropriate options depend on your lifestyle, existing risks and current insurance protection.

Many household insurance policies already include natural hazards cover. This may cover damage caused by flooding, storms or hail. The specific events covered and any compensation limits depend on the applicable policy conditions.

Over time, your home, belongings and personal circumstances may change. That is why it makes sense to review your insurance coverage on a regular basis. Explore our Insurance Solutions for Private Individuals and learn more about household insurance, liability insurance, legal protection insurance and other important coverages.

Editorial note: This article was originally published on 8 April 2026 and was reviewed and updated in September 2026.