I used to have a minimal emergency fund.
In Switzerland many risks are covered:
- unemployment insurance
- health insurance max. franchise and co-payments
- disability and death insurance trough 1st, 2nd and 3rd pillar
- I have a third party liability insurance.
Alternatives to emergency fund:
- salary spouse
- credit card limit
- loan from family
Risk to be covered by emergency fund:
- intercontinental flight to visit elderly family members
- spontaneous holidays
- health insurance maximal co-payments of CHF 3’2000 (2’500 + 700)
- CHF 3860 for 2nd class GA (we don’t own a car)
- housing emergency maintenance
Since we become owners of our primary residence (exclusively primary mortgage, no secondary mortgage; only cash downpayment, 2nd or 3rd pillar untouched, mortgage sustainability acceptance with single income) I am reassessing the emergency fund. Fire insurance is mandatory, and I will get water insurance. The oil heating is shared by a total of 7 parties. Are there any housing related risk you take into account for your emergency fund?