| Insurance Type | Who is responsible | Covers |
|---|---|---|
| Home insurance | Rent-to-own buyer | Furniture, property, interior |
| Building insurance | Landlord | Building structure, installations |
Insurance for rent-to-own housing — what must you have?
When buying a home through rent-to-own, specific insurance is required to protect both your investment and your legal position. Rent-to-own is regulated since 2026 by the Act (2026:843) on rent-to-own housing (Lag (2026:843) om hyrköp av bostad), and insurance requirements are a central part of this form of purchase.
Which insurance policies are mandatory for rent-to-own?
In a rent-to-own arrangement, you act as a tenant under an agreement with the property owner. During this period, two main insurance policies must be in place.
Home insurance (hemförsäkring) for the tenant is the first. You need home insurance that covers your furniture, interior, and personal belongings inside the home. This insurance is your responsibility as a tenant and protects you if fire, burglary, or other damage occurs to your belongings.
Building insurance (byggnadsförsäkring) from the landlord’s side is the second. The landlord must have insurance that covers the building structure itself — walls, roof, floor construction, and installations. This is a prerequisite for a rent-to-own contract to be valid.
Insurance for the building — the landlord’s responsibility
The landlord is legally obliged to insure the building. This insurance covers damage to the structure of the house and is often called property owner insurance (fastighetsägarförsäkring) or building insurance (byggnadsförsäkring).
If the landlord does not have this insurance, you as the rent-to-own buyer risk large financial losses if something happens. Therefore, it is wise to request proof that the insurance exists before you sign a rent-to-own contract.
Your rent-to-own contract should clearly state who is insured for what. If the contract lacks this information, you are advised to contact the landlord or a legal advisor.
Home insurance — your personal property
Your home insurance is completely separate from the landlord's building insurance. You must purchase and pay for this insurance yourself.
Standard home insurance for tenants covers:
- Furniture and interior
- Electronics and household appliances
- Clothes and personal belongings
- Glass and mirrors you have installed yourself
- Water damage resulting from your installations
Many home insurance policies also offer legal protection insurance (rättskyddsförsäkring), which can be valuable if you end up in a dispute with the landlord regarding the rent-to-own contract.
What are reasonable insurance costs?
The cost of home insurance varies depending on the type of home, the area, and the insurance provider.
The landlord's building insurance is usually included in their costs and often affects the rent or the rent-to-own purchase price. It is important that this cost is clearly stated in your rent-to-own contract so that you know what you are paying for.
Special insurance to consider
Beyond the two main insurance policies, there are some additions worth considering.
Legal protection insurance is often included in premium versions of home insurance. It covers legal costs if you and the landlord fall out over the rent-to-own contract or other housing matters.
Property insurance with extended coverage may be relevant if you own expensive electronics or valuables. This often covers valuable items both at home and when you transport them.
Insurance for the transition to full ownership — as your rent-to-own period approaches its end and you move to fully purchase the home, you often need to adjust your insurance or take out new policies. This is something to plan for well in advance.
What happens if the insurance is missing?
If the landlord has not insured the building, you as the rent-to-own buyer have limited protection. In the event of major damage, this can be very costly. You cannot demand compensation from the landlord for damage that is not covered by their insurance, unless it is due to their negligence.
If you do not have home insurance yourself, your furniture and property are completely unprotected. A fire or a break-in can then be financially devastating.
Therefore, it is important to check the insurance situation before you start a rent-to-own agreement. Ask the landlord directly if the building is insured, and take out home insurance immediately.
How to use insurance in practice
Once you are a rent-to-own buyer and something happens, it is important to know how to make an insurance claim.
In case of damage to your furniture and property — report the damage to your insurance company promptly. You will often need photographic documentation and receipts for what was damaged. Your insurance company will guide you through the process.
In case of damage to the building — this is the landlord's responsibility to report. However, you should inform them immediately so that they can file a claim against their insurance.
If you and the landlord disagree about who should pay for a certain damage, your legal protection insurance may come in handy.
Insurance in relation to the rent-to-own contract
Your rent-to-own contract should contain a clear insurance clause. It should specify:
- That the landlord is required to insure the building
- That you are responsible for your home insurance
- Which damages are covered by each insurance
- What happens if an insurance policy is missing
If you are unsure whether your contract is sufficiently clear, it is recommended that you consult a legal advisor before signing. You can also read more about other legal aspects of renting.
Insurance and municipal rent guarantee
As a rent-to-own buyer, you may in some cases be eligible for a municipal rent guarantee. Such a guarantee protects the landlord against non-payment, but it does not replace your own insurance. You still need home insurance for your belongings.
Frequently asked questions
Is home insurance mandatory for rent-to-own buyers? Yes, you must have home insurance to protect your furniture and property. While not strictly legally mandatory by statute, it is strongly recommended and is often required by landlords in practice.
Who pays for building insurance in rent-to-own? The landlord is responsible for insuring the building. The cost is usually included in the agreed-upon rent-to-own purchase price or the rent, but this must be clearly regulated in your contract.
Can I make the insurance requirement a condition before signing a rent-to-own contract? Yes, that is very wise. Before you sign any contract, you can and should ask for written proof that the landlord has insured the building. Make this a mandatory condition in the contract.
What happens if the landlord hasn't insured the building? You cannot enter into a valid rent-to-own contract under current legislation. If this has already happened, you are recommended to seek legal advice immediately, as this is a serious breach of contract.
More information on important concepts in the rental market and the transition from subletting (andrahandsuthyrning) can provide you with further knowledge about the housing market.
This text is general information and does not replace legal advice. In case of uncertainty, it is recommended to consult a lawyer or real estate agent.
