| Coverage | What is included |
|---|---|
| Basic coverage | Damage to flat and fittings |
| Extended coverage | Above plus liability and tenant protection |
| Premium coverage | All above plus legal advice and value increase |
Insurance for a rental flat
Insurance for a rental flat costs different amounts depending on the flat's value, location and which risks you insure against. The cost is determined by the insurance company based on a risk assessment of the property and tenant. There is no statutory insurance cost — the price varies between insurance companies and depends on your choice of coverage.
What is included in rental flat insurance?
Insurance for a rental flat typically covers damage to the flat itself, furniture and fittings that you own, and liability if a tenant or visitor is injured. Many policies also include protection against the tenant's failure to pay rent, water and electricity damage, as well as burglary and theft.
It is important to distinguish between your insurance as a landlord and the tenant's home insurance. As a landlord, you insure your own assets and your liability. The tenant insures their own furniture and personal belongings through their own home insurance.
Rental flat insurance — different coverage options
Most insurance companies offer the option to choose which risks you want to cover. A more expensive flat costs more to insure than a cheaper one. The same applies if the flat is in an area with higher burglary risk. Get quotes from several companies to get a picture of what it costs to insure your specific flat.
How does the insurance company calculate the cost?
The insurance company carries out a risk assessment based on several factors. They look at the flat's value, age and condition. They ask whether there is an alarm or other security systems. They want to know how long you plan to rent out and what type of tenant you are looking for.
The area also matters. A flat in an area with many burglaries is insured more expensively than one in a quiet area. Your own insurance history can affect the price — if you have made many claims in the past, the premium will be higher.
As a landlord, you can often get a discount if you insure several flats with the same company, or if you combine the rental insurance with home insurance for your own home.
Is insurance compulsory?
There is no law that says you must insure a flat you rent out. The rules on private rental (privatuthyrningslagen) do not require insurance. However, it is strongly recommended. Without insurance, you risk having to pay for damage caused by the tenant yourself, or for your own losses if something goes wrong.
If you have a mortgage on the flat, your bank may require you to have insurance. Read your loan agreement carefully.
What does it cost to insure furniture and fittings?
If you rent out a furnished flat, the insurance cost will be higher. You must then insure not only the flat itself but also furniture, kitchen, washing machine and other equipment. How much extra it costs depends on the value of the furniture and which company you choose.
The insurance company needs a list of what is included. The higher the value of the furniture, the higher the premium. A flat with simple furniture costs less to insure than one with designer furniture. Make a careful inventory before you request a quote, so that the premium matches the actual value and you do not risk being underinsured.
Checklist: How to insure your rental flat
-
Inventory the flat — Make a detailed list of everything you own in the flat, with value and purchase date.
-
Determine insurance amount — Calculate the total value of the flat, furniture and fittings.
-
Compare insurance companies — Contact at least three insurance companies and request a quote. Ask what is included and what is not.
-
Choose coverage — Decide whether you want basic coverage, extended coverage or premium coverage.
-
Read the terms carefully — Make sure you understand what is insured and what is not.
-
Take out insurance before the tenant moves in — You are not insured until the agreement is signed.
-
Update your insurance — If you make major investments in the flat, tell the insurance company.
-
Keep receipts — Keep all receipts for furniture and repairs for any claims.
Frequently asked questions
Can I deduct the insurance cost on my tax return? Yes, the insurance cost for a rental flat is an operating cost that you can deduct from your rental income when you file your tax return. The Swedish Tax Agency (Skatteverket) allows this because it is a cost directly linked to the rental.
What happens if the tenant damages the flat? It depends on what the insurance covers and what the tenant did. If the damage is due to the tenant's negligence or failure to take care, you can often get compensation from your insurance. You can also claim compensation from the tenant directly, but insurance is often the easier route.
Does the tenant need their own home insurance? Yes, the tenant should have home insurance that covers their own furniture and personal belongings. Your insurance does not cover the tenant's things. If the tenant does not have insurance and their furniture burns down, that is their problem, not yours.
Does it cost more to insure a flat in Stockholm than in the countryside? Generally, insurance costs more in larger cities where the risk of burglary and theft is higher. How big the difference is depends on the company and area — request a quote for your specific address to get a fair price.
Read more about renting out
Want to know more about what it costs to rent out? Read our guide on what it costs to rent out a flat monthly. We also have a comprehensive guide on home insurance when renting out that goes deeper into insurance choices.
If you rent out a furnished flat, it may be valuable to see what a furnished flat costs in Malmö to understand the market. You can also read about the standard deduction when renting out to understand the tax on rental income.
This text is general information and does not replace legal advice. Contact an insurance broker or lawyer for advice on your specific situation.
