---
title: "How much does it cost to insure a rental property?"
author: "William Wiklund"
authorUrl: "https://bofrid.com/en/articles/authors/william-wiklund"
datePublished: "2026-10-26T07:15:01.915Z"
dateModified: "2026-10-26T07:15:01.943Z"
description: "Rental property insurance costs 2,000–12,000 SEK annually. Learn what affects the price and how to compare quotes from insurers."
keywords: ["rental property insurance price", "rental property insurance cost", "landlord insurance price", "rental property insurance", "landlord insurance cost", "insurance premium rental"]
categories: ["Guides", "Landlord"]
canonical: "https://bofrid.com/en/articles/how-much-does-it-cost-to-insure-a-rental-property"
language: "en"
image: "https://bofrid.media/cms/14bd9e8b6caa86876f83bd13a6ade6c50d4c546a.webp"
---

# How much does it cost to insure a rental property?

## Rental property insurance: price and cost

Insurance for a rental property varies in price depending on the property's value, location, building materials and the scope of the insurance. The premium is determined by the reconstruction value and which risks are covered — a flat with a high reconstruction value costs more to insure than one with a lower value. Prices differ significantly between insurance companies, and comparing quotes can save money.

## What is included in a landlord's insurance?

A landlord's insurance protects the building itself, permanently installed equipment and the landlord's liability towards tenants. It typically covers damage from fire, burglary, theft, water damage and weather. The insurance also covers legal costs if a tenant is injured in the flat and claims compensation from the landlord.

The tenant's furniture and personal belongings are not covered by the landlord's insurance — the tenant needs their own home insurance for that. See our guide [Home insurance when renting out: Everything you need to know (Guide 2026)](https://bofrid.com/en/articles/home-insurance-rental-guide-sweden) for more information about the tenant's insurance needs.

## Factors that affect rental property insurance price

### Reconstruction value

The most important factor is the property's reconstruction value — what it would cost to rebuild the house from scratch. A flat's market price and reconstruction value can differ significantly. Insurance companies use the reconstruction value, not the market price, to calculate the premium.

### Location and area

Properties in major cities or high-risk areas cost more to insure than in smaller towns. Areas with high burglary rates incur a higher premium. Proximity to water or forests can also affect the price due to flood and fire risks.

### Building materials and age

Older wooden houses cost more than modern houses with concrete and steel. Old electrical installations increase fire risk and therefore the premium. Houses from the 1950s or earlier are often classified as higher risk.

### Security systems

Flats with alarms, surveillance cameras or modern locking systems often receive a discount on the premium. These investments reduce the insurance company's risks and are reflected in lower costs.

### Excess (deductible)

A higher excess lowers the annual premium, while a lower excess raises it. Choosing the right excess is a balance between low annual costs and reasonable personal risk in case of damage.

## Comparison of insurance costs

| Scenario | Reconstruction value | Approximate annual premium | Excess |
|---|---|---|---|
| Small flat, low-risk area | Lower | Lower | Lower |
| Medium-sized flat, normal area | Medium | Medium | Medium |
| Larger flat, high-risk area | Higher | Higher | Higher |
| House with land, countryside | Varies | Varies | Varies |

*The table is an example overview — contact insurance companies for current prices in your case.*

## How to calculate your insurance cost

1. **Determine the reconstruction value** — contact a property valuer or use the insurance company's calculator. This is not the same as the purchase price.

2. **Gather quotes from at least three insurance companies** — Länsförsäkringar, Folksam, If, Trygg-Hansa and Allianz offer landlord insurance. Use comparison websites such as Pricerunner or the insurance companies' websites directly.

3. **Compare what is included** — some companies cover mould damage, others do not. Some include legal insurance, others charge extra for it.

4. **Choose your excess** — higher excess = lower premium. Assess your finances and choose what suits you.

5. **Ask about discounts** — many companies offer discounts for long-term tenants, security systems or if you insure multiple properties.

6. **Review the contract** — read what is excluded. Some insurance policies do not cover damage caused by the tenant's negligence.

## Is insurance mandatory?

There is no general legal requirement for private landlords to take out insurance for the property, but if you have a loan on the property, the bank almost always requires insurance. The loan terms often specify a minimum insurance amount and which risks must be covered.

Even without a loan, insurance is strongly recommended. A fire or burglary can cost significant amounts — often far more than the annual premium. Without insurance, you bear the entire cost yourself if something happens, which can mean financial disaster for most private individuals. Taking out insurance is therefore one of the most important steps you can take as a landlord to protect your investment.

It is also worth reviewing your insurance regularly. The reconstruction value can change over time, and new risks may arise. An annual review with the insurance company ensures that the cover still meets your needs. In addition, competition between companies means you may find better terms if you compare at regular intervals.

## Frequently asked questions

**Can I deduct the insurance premium from the rent?**
No. The insurance cost is an operating cost that you as the landlord pay. You can deduct it from your taxable income from renting out, but not from the rent itself. See [How much can you save on tax when you rent out](https://bofrid.com/en/articles/how-much-tax-can-you-save-when-letting-out-a-property) for more information about tax deductions.

**Does the landlord's insurance cover damage caused by the tenant?**
It depends on the contract. Many insurance policies cover normal wear and tear (slitage) and minor damage from normal use, but not intentional damage or gross negligence. If the tenant causes major damage, you can claim compensation from the tenant directly — the insurance reimburses you for your own losses.

**What happens if I do not insure the property?**
If you have a loan, you breach the loan terms and the bank can terminate the loan. Without insurance, you bear the cost of all damage yourself — a fire can destroy a property worth large sums. The risk is very high.

**Can I get a discount by insuring multiple properties?**
Yes. Most insurance companies offer a discount if you insure two or more properties with the same company. Always ask about this when comparing quotes, as terms differ between companies.

## Related articles

Read more about costs when renting out in [What does it cost to insure yourself when renting out a flat?](https://bofrid.com/en/articles/what-does-it-cost-to-insure-a-rental-flat) and [What is a reasonable return on a rental property](https://bofrid.com/en/articles/what-is-a-reasonable-return-on-a-rental-property) to understand how insurance affects your finances. For information about other costs when renting out, see [3 documents you need for safe renting out](UGC7).

*This text is general information and does not replace legal or insurance advice.*