Building Insurance Act (Gebäudeversicherungsgesetz, GebVG) - Purpose of Building Insurance (GebVG)

1. The Aargau Building Insurance provides for the prevention and defense of damages to protect people, animals, and property.

2. It insures the buildings within the cantonal territory against fire and elemental damages.

3. Its activities follow the principle of solidarity among all owners of buildings.

1. The Aargau Building Insurance is an independent public institution with its own legal personality.

1. The building insurance supports measures for the prevention or reduction of dangers to persons, animals, and property from fire, explosion, and natural events.

2. It performs duties for protection against fire and explosion damage in accordance with the legislation on preventive fire protection.

3. It participates in the preparation of spatial planning measures for protection against natural damage according to the legislation on spatial planning, environmental protection, and construction.

1. The building insurance is a partner in civil protection in the areas of rescue, firefighting, and the management of natural disasters.

2. In ordinary situations, it supports and coordinates the operational readiness of municipalities and the deployment of the fire brigade according to the fire brigade legislation.

3. In special or extraordinary situations, it provides services within the framework of national and cantonal security cooperation according to the legislation on civil protection and the fire brigade.

1. By decree, additional tasks pertaining to personal and casualty insurance that are the responsibility of the canton and regulated by law can be assigned to the implementation of the building insurance.

1. The insurance relationship exists between the policyholders on the one hand and the building insurance on the other hand.

2. Policyholders are the owners of buildings for which there is a mandatory or voluntary insurance with the building insurance.

1. For all buildings in the Canton of Aargau, insurance against fire and natural damage is mandatory from the start of construction.

2. Insurance for damages covered by the obligatory requirement must be obtained through the Aargau Building Insurance. Insurance contracts that contravene this regulation are void.

1. Buildings are exempt from the obligation and the monopoly if they are of low value or are only erected temporarily. The governing council shall regulate the details through an ordinance.

1. Rights and Obligations Arising from the Compulsory Insurance Relationship Begin

a) with a written or oral registration for construction period insurance or for a new or reassessment directly at the headquarters of the building insurance, or with the submission of a written registration at a Swiss post office,

b) with the assessment in all other cases.

2. Reserving the establishment of a different starting point, particularly if the registration occurs before the commencement of construction.

**1. Buildings can be excluded from insurance if**

a) their heating systems or electrical installations are deficient,

b) they do not have the required protective or extinguishing equipment,

c) their construction type or inadequate maintenance significantly increases the risk of damage from insured events,

d) they are built on a site known to be significantly endangered.

**2. The exclusion may apply to all or specific parts of the building, as well as to all or specific insured risks.**

**3. Before issuing the exclusion order, the owner must be given a reasonable period to rectify the deficiencies.**

1. Fire Damage Insurance

Fire damage insurance covers damage to buildings that occur as an accident by

a) fire, smoke, and heat,

b) lightning strike,

c) explosion and implosion,

d) blasting operations, insofar as no compensation from third parties is available,

e) crashing or emergency landing of aircraft or parts thereof, including air freight, insofar as no compensation from third parties is available.

2. Exclusions

Wear and operational damages as well as heat damages that are not based on a technical cause are not covered.

**1. The Natural Disaster Insurance covers damages to buildings caused by:**

a) Storms,

b) Hail,

c) Flooding and inundation,

d) Snow pressure, snow slide, and avalanches,

e) Landslides, subsidence, rockfall, and rockslides.

**2. Damages not covered are those caused by:**

a) Natural influences such as humidity, drought, soil settlement, and frost,

b) Infiltration of rainwater, snow, and slope water through roofs, walls, windows, and floors,

c) Artificial water installations like reservoirs or sewage backflow,

d) Groundwater,

e) Poor building ground or artificially induced soil changes,

f) * ...

g) * ...

**3. Furthermore, damages predominantly caused by faulty design or inadequate maintenance are not covered.**

**4. Within the framework of proportionality, owners are obligated to undertake necessary and reasonable preventive measures against insured natural disasters during the construction and maintenance of their buildings. The building insurance can demand corresponding preventive measures.**

**5. The government council defines the insured natural disasters and regulates the building-specific minimum requirements and protection goals for new constructions and existing buildings through ordinances. It can declare guidelines of recognized professional associations for disaster prevention as binding.**

1. Not covered are damages arising directly or indirectly from

a) modification of atomic nucleus structure,

b) meteorites or earthquakes,

c) acts of war, civil commotions, use of military or police force,

d) supersonic boom,

e) operations and exercises by the military, police, or civil defense.

2. By decree, any of these risks may be included in the insurance coverage, if this is possible under economically sustainable conditions.

1. The insurance covers all components of a building that may incur damage relevant under this law. The Government Council may specify individual exceptions by regulation.

2. The land, as well as the value of the location and the rights and encumbrances associated with the building, are not insured.

1. The insurance value is generally considered to be the average cost of constructing a building of the same type, size, finishing, and location (replacement value).

2. If the depreciation due to age and use of a building exceeds 35% of the replacement value, the reduced value applies (current value).

3. If a building is under construction or if value-increasing modifications to an existing building are underway, the value corresponding to the stage of construction applies (increasing value of construction period insurance).

4. If a building is designated for demolition, the value of the parts intended for reuse, minus the cost of their removal, applies (demolition value).

5. If a building is destroyed or damaged by an insured event, the previous insurance value minus the determined damage amount applies until restoration.

6. If construction costs change significantly, the building insurance adjusts the insurance values at the start of the following year without a new appraisal.

7. In extraordinary cases, particularly for irreplaceable historic buildings, the insurance value is determined at discretion, taking into account experience values.

1. Estimations of the Insurance Value are Carried Out

a) after completion of construction,

b) upon a justified request by the owner,

c) by order of the building insurance.

2. In the case of minor changes to the building or its surroundings, the insurance value may be adjusted without a new estimation.

3. The Board of Directors regulates the estimation procedure in a regulation.

1. Increases in risk due to a change in use or other circumstances must be reported immediately by the owner to the building insurance.

1. The premiums and prevention contributions shall be set so that, together with other income, they suffice to finance the tasks of the insurance.

2. The board of directors determines the premiums based on actuarial principles and sets the amount of prevention contributions.

3. Within this framework, the premiums and prevention contributions for each insurance relationship are determined individually.

4. In the event of a reduction or increase in risk, the premiums are adjusted as soon as the notification of the new circumstances is received by the building insurance. If it is received late, the lost premiums will be demanded retroactively.

5. If the exclusion from the insurance in the case of a building pertains only to individual parts or specific hazards, the building insurance may reduce the premium.

1. If there is an annual surplus, half of it, limited to one million Swiss francs, must be delivered to the canton. If surpluses persist over several years, the premiums or benefits must be adjusted.

1. Premiums and prevention contributions become due at the commencement of the insurance, with recurring annual premiums and prevention contributions due at the start of the calendar year.

2. The owner at the time the premiums and prevention contributions become due is liable for payment. If the ownership changes before payment, the payment of the entire premiums and the total prevention contributions may also be demanded from the legal successors.

3. A statutory lien exists on the insured buildings, without entry in the land register, taking precedence over all registered encumbrances

a) * for due premiums and prevention contributions,

b) * in the case of recurring annual premiums and prevention contributions, for two lapsed premiums and prevention contributions as well as for the current premium and prevention contribution.

1. Owners must report damage to the building insurance immediately upon discovery.

2. If the notification is not made within one year from the event, the claim for compensation expires.

3. Without the consent of the building insurance, no changes may be made at the site of the damage that do not serve to rescue or avert immediate danger.

1. Owners must take all reasonable steps to prevent and mitigate damage.

1. Compensation is calculated based on the amount of damage, taking into account ancillary services and any possible reduction.

2. In the case of natural disasters, the owner must bear a deductible of CHF 300 per building.

3. The board of directors may set risk-related deductibles for buildings with an increased risk of damage. The deductible may amount to up to 10% of the compensation, but not more than CHF 10,000 for buildings solely intended for residential and agricultural purposes, or not more than CHF 50,000 for all other buildings.

1. If a building is completely destroyed, the amount of damage corresponds to the insured value.

2. If a building is partially destroyed, the amount of damage is determined based on the insured value in proportion to the damaged part relative to the undamaged part.

3. If the damage amounts to less than one-third of the insured value, the amount of damage corresponds to the restoration costs. In the case of an actual cash value insurance, it should be reduced by the added value resulting from the restoration.

4. If the restoration costs are disproportionately high compared to the damage, the depreciation may be determined as the amount of damage instead of the restoration.

5. The value of reusable parts and materials is deducted from the amount of damage, taking into account the additional expense for reuse.

6. If a building is destined for demolition, the amount of damage corresponds at most to the demolition value.

1. The Building Insurance also covers

a) the costs for demolition, clearance, and compliant disposal of the insured parts, limited to a maximum amount of 12% of the loss sum in total,

b) the costs for necessary precautions to protect the remaining parts of the building, provided the value of the remnants justifies the costs of such precautions. If these protective measures also serve other purposes, the building insurance reimburses the portion of the costs corresponding to its interest,

c) the damage to buildings as well as to trees, crops, and enclosures resulting from extinguishing and rescue operations or safeguarding measures by the competent authorities.

1. If a completely destroyed building is not reconstructed within three years at the same location and for the same type of use, the damage amount corresponds to the value at the time of the occurrence of the damage. For a partially destroyed building, it corresponds to the value attributed to the part that was not restored.

2. For important reasons, the deadline for reconstruction may be reasonably extended.

3. If special circumstances justify it, a construction at another location or with a different use may be authorized.

1. No compensation shall be paid if the owner has intentionally and culpably caused or contributed to the damage event.

2. Compensation shall be reduced in proportion to the degree of fault if the owner has caused the damage through gross negligence or if the damage is attributable to an obvious disregard of the duty of prevention.

3. Compensation shall be reasonably reduced if circumstances that would have led to a higher premium rate were not reported to the building insurance; however, the reduction shall be no greater than the ratio of the premiums paid to those prescribed by the tariff.

4. Compensation for the additionally caused damage shall be reasonably reduced if changes were made at the site of the damage without the consent of the building insurance, which do not serve the purpose of rescuing or immediately preventing further damage.

5. Compensation shall be reduced or entirely forfeited if the causes or extent of the damage can no longer be determined due to a delayed damage report.

1. Right to Claim Compensation

The owner at the time of the damage event is entitled to claim the compensation. In case of the complete or partial loss of this right by the owner, the building insurance remains obligated to pay compensation to the mortgage creditors to the extent that their claims are not otherwise covered.

2. Subrogation of Mortgage Creditors' Claims

The claims of the mortgage creditors are subrogated to the building insurance to the extent that it has paid them compensation.

3. Interest on Compensation

If the amount of damage exceeds one-third of the insured value, the compensation shall bear interest for a maximum of three years from the occurrence of the damage.

4. Pending Criminal Proceedings

If a criminal proceeding is pending in connection with the cause of the damage, payment may only be made before its conclusion if there is no doubt about the rightful claim of the entitled person.

5. Regulation by the Executive Council

The executive council shall regulate the procedure for payments and the rate of interest by decree.

1. For the disbursed compensations, the building insurance may seek recourse against those responsible for the damage. It subrogates to the rights of the insured person to the extent and at the time of its payment.

1. The total of all compensations from a single insured fire or natural event, not covered by reinsurance, is limited to a maximum of 40% of the reserves existing at the beginning of the year.

2. If the total of the provisionally calculated compensations exceeds this limit, the compensations attributable to the individual objects will be proportionally reduced. Until all compensations from the same event have been determined, the payout is to be suspended or limited to partial payments.

1. Within the framework of its reserve and reinsurance policy, the building insurance may conclude the necessary contracts with private or public institutions or participate in such contracts.

2. If mixed-economy or inter-cantonal insurance communities are involved, the contracts require the approval of the Governing Council.

1. The building insurance company must maintain sufficient reserves in accordance with its obligations.

2. The amount of the reserves is determined according to actuarially recognized methods and must be verified by an external entity.

1. Voluntary insurance is possible for

a) buildings that are exempt from mandatory insurance,

b) building-like structures such as bridges, towers, and tunnels.

2. Voluntary supplementary insurance to mandatory or voluntary insurance is possible for

a) structural facilities of the surroundings that form part of the property with an insured building, such as walls, stairs, railings, and basins,

b) clearance costs of insured objects, insofar as they are not included in the basic coverage.

1. The building insurance operates an insurance in the canton to cover water damage to buildings.

1. The insurance relationship is established with the written acceptance of the application submitted verbally or in writing to the building insurance company.

2. Rights and obligations arising from the contract commence with the beginning of the insurance relationship, unless another time has been specified.

1. The content, procedure, and legal protection of voluntary insurance are governed by cantonal public law.

2. The provisions of this law applicable to compulsory insurance shall apply to voluntary fire and elemental damage insurance. The Government Council may issue supplementary provisions by regulation.

3. For water insurance, the board of directors sets the insurance terms. Mandatory provisions of the federal legislation on the insurance contract shall serve as the minimum content.

1. The Building Insurance maintains separate funds for

a) * Prevention of fire and elemental damage (Prevention Fund),

b) * Combating fire and elemental damage (Intervention Fund).

2. The Board of Directors determines the prevention levies to be allocated to both funds, in conjunction with the annual budget.

3. Insurance companies that insure moveable property against fire in the Canton of Aargau are required, in accordance with federal law, to contribute 0.05 ‰ of their Aargau insurance portfolio annually. The Board of Directors determines the allocation of these contributions to the funds.

1. Contributions from the Prevention Fund may be made towards the costs of measures that lead to an improvement in fire safety beyond the legal requirements.

1. Contributions from the Intervention Fund shall be made towards the costs of water supply facilities, fire brigade premises, as well as the equipment, training, and insurance of the fire brigades, provided that the supported measures meet a need and lead to an improvement in readiness.

2. When determining contributions for the equipment of fire brigades, the possibilities for rationalizing fire brigade services must be appropriately considered.

3. Contributions may be determined as lump sums or used to finance central procurements or procurement opportunities, provided that the purpose of the contribution is not jeopardized.

1. Contributions from the Prevention Fund may be allocated to the costs

a) for the development of spatial planning fundamentals, provided they serve to reduce the elemental risk to buildings,

b) for structural protective measures for individual existing buildings, provided they are constructively sound and properly maintained and are largely protected from imminent elemental damage by the measures.

2. The Aargau Building Insurance can, instead of contributions to necessary prevention measures for an individual object according to Paragraph 1 lit. b, provide contributions to the costs of a coordinated object protection measure (notably area protection). The coordinated prevention measure must guarantee equivalent protection as the individual measures it replaces. The amount of a contribution may not exceed the sum of the individual measures it replaces.

1. The Government Council issues regulations by ordinance regarding the use of fund assets.

1. The headquarters of the building insurance is in Aarau.

1. For the fulfillment of its tasks, only the resources of the building insurance are available. There is no liability on the part of the canton.

2. Special provisions for additional tasks assigned for execution remain reserved.

1. The various lines of insurance, namely mandatory and voluntary lines as well as additional tasks assigned by decree, are to be managed on a self-sustaining basis.

1. In the event of an annual surplus from the voluntary building water insurance and the additional tasks assigned by decree, 18% of this surplus must be delivered to the canton. Losses from the preceding seven fiscal years can be deducted from the annual surplus, provided they could not be considered in the calculation of surpluses for those years. If surpluses exist over several years, the premiums or benefits are to be adjusted.

1. The Board of Directors consists of five to seven members. The Executive Council elects the President and the other members for a term of one year.

1bis. Eligible for election are individuals who, at the commencement of their term, have not yet reached the age of 70 and have not yet served on the Board of Directors for 16 years.

2. The Board of Directors shall organize itself.

3. The Board of Directors is responsible for the overall management of the company. It issues general regulations for the management of the company, the responsibilities, and the authorities of its top bodies. These regulations are based on generally recognized standards for corporate governance. They must be approved by the Executive Council.

4. The following tasks of the Board of Directors are non-transferable

a) Determination of the basic principles of business policy with the necessary directives,

b) Definition of the organization and issuing of regulations,

c) Election of the executive management and supervision of its activities, as well as designation of persons authorized to sign documents,

d) Approval of reinsurance contracts and participation in relevant institutions, as well as supervision of reserve formation,

e) Submission of the business report and annual financial statements to the Executive Council for the attention of the Great Council.

1. The board of directors elects the executive management, consisting of one or more persons.

2. The executive management conducts the ongoing business operations. It represents the building insurance entity in dealings with third parties. Furthermore, the responsibilities and authorities are defined in the General Business Regulations.

1. The executive council appoints an audit office.

2. The provisions of the Swiss Code of Obligations applicable to auditors of corporations apply mutatis mutandis to the duties, responsibilities, and standard of care.

3. Reporting is made to the executive council.

2. The municipalities shall, upon issuing building permits, inform about the obligation to register for the compulsory insurance. They are also authorized to carry out this registration as a substitute.

3. The municipalities shall assist in the organization of the assessment if necessary. The costs are borne by the building insurance.

**1. Provisions of Cooperation within Cantonal Administration**

The provisions of the Organizational Law apply to the cooperation within the cantonal administration. The government council regulates the mutual compensation for services through ordinances.

1. Municipalities, land registry offices, and cantonal administrative bodies are obliged to provide the building insurance with person-related, property, and survey data related to buildings free of charge, as required for the fulfillment of its duties.

2. The building insurance shall provide municipalities, land registry offices, official surveying updating centers, and cantonal administrative bodies with the building-related data it possesses free of charge, as needed for the performance of their duties.

1. The building insurance ensures the linking of its building-related data to the building identifier (EGID) in accordance with Article 10, paragraph 3bis of the Federal Statistics Act (BStatG) of October 9, 1992, as well as in accordance with the Ordinance on the Federal Building and Housing Register (VGWR) of June 9, 2017.

1. An appeal against orders of the building insurance, issued pursuant to this law, can be lodged within 30 days of notification. The appeal must be submitted in writing and include an application with a brief justification. Any evidence must be enclosed or identified.

2. The building insurance reviews the order and the arguments presented in the appeal; it issues a written decision with justification.

3. If it intends to amend the order to the detriment of the appellant, it must give the appellant an opportunity to provide a written or oral statement within a reasonable period in advance.

1. An appeal against the objection decision can be filed with the Special Administrative Court within 30 days of notification.

2. The provisions applicable to the Administrative Court apply to the proceedings.

3. If the amount of the insurance premium is in dispute, the appeal does not have a suspensive effect.

4. ...

1. Whoever acts in contravention of the provisions and decisions issued based on this law shall be punished according to the regulations for contraventions under the Swiss Penal Code.

2. The adjudication shall be conducted by the ordinary criminal authorities responsible for contraventions in accordance with the applicable procedure.

1. This law shall be published in the legislative collection after the unused expiration of the referendum period or upon acceptance by the populace. The governing council shall determine the date of its entry into force.

1. The Law on Building Insurance (Building Insurance Act, GebVG) of January 15, 1934, is hereby repealed.

1. From the effective date of this Act, the new law shall apply to existing insurance relationships.

2. The members of the Board of Directors shall remain in office, subject to term limitations, until the end of the current term.

3. The building insurance shall agree to cooperation with the municipalities within one year of the effective date of the Act.

4. First-instance proceedings pending at the time this Act comes into force shall be judged according to the new law.

5. Legal remedies and civil disputes pending at the time this Act comes into force shall be judged according to the previous law. The Special Administrative Court shall decide instead of the Higher Assessment Authority.

**1. From the annual surplus pursuant to § 44a, losses can first be deducted starting from the financial year 2017 and subsequent years.**