"Unique in its dimensions": The damage in Blatten amounts to at least 180 million Swiss francs, and reconstruction will be even more expensive

The mountain no longer calls, it comes. After the glacier collapsed in the Lötschental on May 28, the Valais village of Blatten lies buried under a cone of debris, some more than 100 meters high. Around 300 people were forced to evacuate their homes and watch as their village was completely destroyed.

"The Blatten landslide, in terms of its magnitude and its impact on the population, is hardly comparable in Switzerland," says Thilo Kleine, spokesperson for the Swiss Insurance Association (SIA). This is also demonstrated by a look at the claims history of Swiss private insurers over 70 years.

Due to the unique nature of the event in the Lötschental Valley, the extent of the damage remains unclear – and there's no upper limit. Neither the Lötschental Regional Management Team, the Canton of Valais, nor the federal government have provided more precise estimates. The Zurich Insurance Association, however, suggests a magnitude: several hundred million francs. And: This year, the Lötschental rockfall alone is likely to exceed the average annual damage amounts of the Swiss natural hazards pool. These damage amounts have averaged around 180 million francs annually since 2001.

This makes it clear: The financial damage in the Blatten case has reached historic proportions, although estimates of the extent of the damage and the costs of any reconstruction of Blatten remain difficult. According to industry experts, the figure could be as high as CHF 400 million.

Fernando Giovanoli, president of the municipality of Bregaglia in Graubünden, which includes the village of Bondo, which was affected by a landslide in 2017, speaks from experience when he says: "Every landslide is unique." Perhaps initial estimates could be made "around Christmas." One must first know what will be needed. In Bondo, many costs only surfaced afterward. Giovanoli cites the repair of the water supply, the small drinking water power plant, electrical lines, the costs of the landfill, and new mountain and hiking trails as examples.

Estimating the damage in Blatten is also difficult because the situation is not yet completely stable and further costs could arise. Giovanoli sees risks if heavy rainfall occurs in the region in the coming weeks. "After the glacier collapsed, there is a lot of material that is now mobile," he says.

In Bondo, the cost of reconstruction and renovation work amounted to 52 million Swiss francs. The work is still ongoing. Work on the gymnasium, for example, is still underway.

The municipality itself was left with costs of 14 to 15 million Swiss francs, largely financed by numerous donations. The remaining amount was split between the federal government and the canton of Graubünden. The costs for reconstruction and renovation turned out to be more than 20 percent higher than originally budgeted. This was primarily due to higher prices for materials such as steel and concrete, fuel, and energy following the outbreak of the war in Ukraine in 2022, as well as minor structural modifications. "We were unlucky with the timing; the construction of three bridges was put out to tender at exactly this time," says Giovanoli.

In Bondo and the Bondasca Valley, a total of around 40 buildings were damaged by the 2017 landslide, he says. The disaster in Blatten, however, has "a different dimension."

What is particularly devastating for Blatten is that even if the affected homeowners have building insurance, many are likely to have suffered financial losses.

Urs Ramseier, insurance expert and CEO of Twelve Securis, explains why. A look at the debris cone shows that the land on which the buildings stood is practically worthless after the rockslide, unless the village can be rebuilt on the same site. "Consequently, the property owners' land value is also gone, and this is not insured," he says. "Overnight, the asset value has plummeted to zero."

In addition to the buildings, a large part of the public infrastructure in Blatten – such as roads, electricity, parks and the water supply – has disappeared under the rubble.

In principle, damage to municipal infrastructure falls under the responsibility of the municipalities—possibly supported by the federal government, canton, and insurance contributions, the Lötschental Regional Management Team stated in response to an inquiry. The same applies to reconstruction, emergency supplies, and clearance costs.

The municipality of Blatten has insured the buildings it owns. However, infrastructure such as sewerage, water supply, etc., is not insurable. According to insurance sources, there are currently no corresponding insurance products.

The canton has also insured its properties affected by the accident – ​​as far as possible, the media office of the Canton of Valais stated in response to an inquiry. However, roads and bridges have not been insured.

In light of the tragic and exceptional situation affecting the village of Blatten, the Valais State Council intends to support the population and municipal authorities. On Wednesday, it announced the release of an initial amount of CHF 10 million in financial support for the residents of the municipality of Blatten. This is a start—but still small compared to the expected amount of damage.

The canton will cover 75 percent of the costs for the construction of new cantonal roads, with the remainder being borne by those directly affected and all other Valais municipalities.

Blatten is also hoping for financial support from the federal government in Bern. At the end of the week, the Federal Council could also announce its plans to support the municipality of Blatten.

In Valais, the consensus is clear: Blatten should be resurrected. At the media conference on Wednesday, the Valais State Council also announced the establishment of a strategy group.

"According to the mayor, rebuilding Blatten is the declared goal; the question is only where," says the Lötschental Regional Management Team.

Even though funds are now available for rebuilding Blatten, much remains unclear. "First, we need to assess the risk situation and explain the danger of further rockfalls in the Lötschental," says Lukas Rühli of the liberal think tank Avenir Suisse.

Rühli sees the primary responsibility for reconstruction as the responsibility of the municipality and canton, not the federal government. Private assets are largely insured—ultimately, it's primarily the geological questions that need to be answered.

Rühli believes the reconstruction of the village is, in principle, financially viable. "The money to create infrastructure—water supply, electricity, internet connections, etc.—for 300 people is definitely available in the canton of Valais," he says. The canton's population is currently growing many times that amount every year, and it's possible to provide the necessary infrastructure for these people.

Creating a completely new infrastructure in one spot would likely be more expensive than integrating it with a village's existing infrastructure, he says. He also cannot currently estimate the costs of a possible reconstruction of Blatten.

Christian Rieder, President of the Lötschen Valley Council , has already stated in an interview with SRF that it would be unrealistic to remove the debris cone above Blatten – simply because of the question of where to put the material. "It's more likely that Blatten will be rebuilt somewhere else. For example, in Weissenried, which already belongs to the municipality."

According to Avenir Suisse representative Rühli, it remains to be seen how many of the 300 evacuated residents will ultimately want to return to their original location. Reconstruction is expected to take several years. Those affected will be forced to live and work elsewhere in the meantime, especially since Blatten is largely buried and the remaining houses and apartments are uninhabitable. "Once the Blatten residents have settled into a new place, some might consider it their new home and even want to stay," says Rühli.