Property tax and property insurance
All house owners must pay property tax, and certain insurance policies are mandatory.
Taxes
Property tax is divided into five different categories of taxes, each of which is a certain ratio of value of the property:
property tax,
ground rent,
sewage charge,
water charge and
waste disposal fees.
Property tax goes to the local communities, which determine the tax assessment and take care of collection.
The payment of property tax is spread over a number of payment dates over the course of the year.
Tax rebates/discounts
Old-age and disability pensioners get a discount on their property taxes in some municipalities, where rules have been established regarding the amount of the discount and the income limit for applicants.
Information and applications regarding property-tax discounts can be obtained from each local community and on their websites.
House insurance
Fire insurance
All house owners must have a fire insurance policy for their property from an insurance company. Owners are also required to get a fire insurance policy for their house while it is under construction.
The fire insurance coverage and the premium are based on fire-compensation assessment.
The fire compensation assessment is not made until the construction of the house has been completed or the house has been taken into use, and the premium is based on other factors during the period of construction. The owner of a house must therefore be careful to notify the insurance company of the completion of construction work on the building, because the premium will then be brought into conformity with the assessed value for fire insurance.
A fire insurance policy is not cancelled upon notice of termination until a new fire insurance policy has entered into force.
Mandatory fire insurance will only cover the building itself, but the contents can be separately insured with an insurance policy from an insurance company.
Other house insurance
All house owners have to pay a catastrophe insurance fee and a fee to the avalanche protection fund.
Catastrophe insurance compensates for loss or damage to houses resulting from the following natural disasters: avalanches, landslides, volcanic eruptions and flooding.
The avalanche protection fund covers the costs involved in the construction of dams and other protective installations in avalanche areas.
These fees are based on the fire compensation assessment of the property and are collected by an insurance company concurrent with the fire insurance premium.
It is a good idea to keep yourself well informed about the insurance terms on other purchased property and income insurance policies.
Remember
Take care that a building under construction is insured against fire according to regulations, and that the insurance company is informed when construction work is completed.
Apply for a fire-compensation assessment within four weeks of new accommodation being taken into use.
Request re-assessment if the value of the property has increased because of improvements made to it.
Notify the insurance company of loss or damage without delay. If this is not done within one year from when the claimant becomes aware of the event of loss or damage the right to compensation will expire.
Old-age and disability pensioners can check if the local community offers property-tax discounts.