IKEA launched its HEMSÄKER household insurance in Switzerland in February 2020. The primary target group for the insurance is IKEA’s customer base, but the insurance is available to all Swiss households.
1. Who is behind IKEA’s household insurance?
The HEMSÄKER household insurance from IKEA is underwritten by iptiQ, a Luxembourg-based insurance provider. iptiQ is a subsidiary of Swiss reinsurance company Swiss Re. Customer support, claims and billing are handled by iptiQ’s Zurich branch office.
2. What is the primary advantage of IKEA HEMSÄKER?
The biggest advantage of IKEA’s HEMSÄKER insurance is that you can terminate the policy at any time without a notice period. Your annual premium is reimbursed proportionately to the remaining portion of the year in which you terminate your policy. That means if the insurance no longer suits your needs, you can terminate it immediately – which makes it very customer friendly.
The only other Swiss household insurance which does not have a notice period is Splitsurance – an Allianz household insurance designed for flat mates. The majority of Swiss household insurance policies require 3-months’ notice. Smile.Direct and Visana require 1-month notice and Groupe Mutuel has a 6-month notice requirement.
An advantage for IKEA Family loyalty program members is that you receive a 20-franc IKEA gift card every claim-free year. This is a significant benefit if you expect to make purchases at IKEA. Claims-free discounts are also offered by CSS (10% discount per 2 claim-free years, up to a 30% maximum discount) and Zurich (15% premium refund after 3 claim-free years).
3. What is the primary disadvantage of IKEA HEMSÄKER?
While you have the option of taking out IKEA HEMSÄKER household insurance without personal liability insurance, you cannot take out personal liability insurance without household insurance. This is disadvantageous because household insurance is unnecessary for many consumers, while personal liability insurance is always recommended. Most Swiss insurance providers let you take out personal liability insurance as a stand-alone product.
4. How does IKEA household insurance compare?
The household insurance lets you insure between 20,000 and 300,000 francs of personal property. These limits are adequate for most Swiss households, but some other insurers such as Smile.Direct (up to 400,000) and Vaudoise (up to 500,000) offer higher coverage limits.
You can choose whether to include coverage for theft, or exclude it for lower premiums – which is an advantage if theft is not a concern. Up to 1000 francs of coverage for simple theft away from home can be added. This is relatively low, as most insurers include 2000 francs of coverage on their simple theft away from home riders. CSS and Visana let you add up to 10,000 francs of coverage for simple theft away from home.
Coverage for fire, water and natural hazard damages are covered by default. Natural hazard coverage does not include floods – a coverage included in most Swiss household insurances. The natural hazard protection also does not include earthquakes – a coverage offered by Bâloise, Generali, Groupe Mutuel, Helvetia, Sympany and Zurich.
The IKEA HEMSÄKER household insurance does not have the option of adding coverage for glass objects – a coverage either included or offered as a rider with almost all other Swiss household insurance policies. Damages caused by electricity (power surges, for example) are not covered by the IKEA household insurance. Axa, Elvia, Groupe Mutuel, Helvetia, Mobiliar, Splitsurance, Sympany, Vaudoise, Visana and Zurich all include coverage for electricity damage in their household insurance policies.
5. How does IKEA personal liability insurance compare?
The HEMSÄKER personal liability insurance is fairly typical in that it lets you choose between a 5 million and 10 million sum insured. The lowest possible deductible is 200 francs. Some insurers – namely Groupe Mutuel, Helvetia, Smile.Direct and Sympany – have the option of a 0-franc deductible. Coverage for gross negligence can be added.
The insurance coverage is similar to that included in other Swiss household insurance policies – with liability as a renter or homeowner, individual, parent, pet owner and employer of domestic employees covered. Liability as a driver of vehicles for which specialized insurance is not required is covered, as is liability for limited self-employment. Lawyer fees are covered – a benefit which is otherwise only included in household insurance from Generali, Groupe Mutuel and Vaudoise. However, the specialized coverages offered by some other insurance providers – such as coverage for equestrians, hunters or professionals – are not insurable with IKEA HEMSÄKER.
6. How does the cost compare to other Swiss household insurance policies?
A premium comparison by independent online comparison service moneyland.ch shows that IKEA’s HEMSÄKER is affordable compared to competing offers – but is not always the most affordable available.
Based on insurance for personal property worth 70,000 francs with coverage for theft and simple theft away from home, a single 40-year-old adult in a 2-room apartment in Zürich would pay an annual premium of 140.30 francs (Smile.Direct) for the same coverage offered by IKEA for 169.60 francs. A 4-person family renting a 4-room apartment in Basel would pay 135.30 francs per year with Smile.Direct compared to 168.90 francs with IKEA. Additionally, the Smile.Direct premium includes its minimum of 2000 francs of coverage for simple theft away from home – compared to 1000 francs of coverage with IKEA HEMSÄKER.
But there are cases in which IKEA is the most affordable available. For example, for a family of 4 which owns their 4-room apartment in Zürich, IKEA HEMSÄKER is the most affordable household insurance at 169.60 francs per year. An identical family who own their own home in Basel or Geneva would pay the lowest premium with Smile.Direct (148.70 and 156.90 francs respectively). It is worth noting that IKEA’s household insurance premiums are lower than those charged by all Swiss insurance providers with the exception of Smile.Direct.
IKEA personal liability insurance is the most affordable insurance in many cases, but it can only be taken out in combination with household insurance. Based on a 5-million-franc sum insured with a 200-franc deductible and coverage for gross negligence and driving borrowed cars, a 40-year-old single adult renting a 2-room apartment would pay 108.50 francs (Zurich) or 108.60 francs (Basel and Geneva) would pay 108.50 francs per year in premiums. IKEA is also the cheapest option for a Family of 4 renting a 4-room apartment in Zurich (169.60 francs) – although Smile.Direct is cheaper for identical families in Basel (135.30 francs compared to 168.90 with IKEA) and Geneva (142.90 francs compared to 170.20 with IKEA).
Verdict
IKEA’s HEMSÄKER household insurance provides good basic personal property and liability insurance at a competitive price. It costs significantly less than similar offers from most Swiss insurers, but it is not the cheapest option in many cases. The introduction of a household insurance without a notice period or a minimum insurance term is a welcome development.
The absence of coverage for glass is a disadvantage, especially coming from a retailer which sells glass furniture. The simple theft away from home coverage is relatively affordable, but the 1000-franc sum insured is low compared to what other insurers offer. The 200-franc minimum deductible means this policy is best suited to high-value claims. If you expect to make smaller claims, getting a policy with a 0-franc deductible makes more sense.
It is also unfortunate that while IKEA's household insurance can be taken out alone, its very affordable personal liability insurance is not sold as a stand-alone product.
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