Guide · Legal & insurance
Hidden-defect insurance — what it covers, what it costs and who it protects
The name misleads many: Swedish hidden-defect insurance (dolda fel-försäkring) primarily protects the seller, not the buyer. Yet it still affects your deal — and the exclusions in the terms decide whether it is worth anything at all. Here is what the insurance actually covers, what it costs and what buyers and sellers should look out for.
01What is hidden-defect insurance?
Hidden-defect insurance — also called seller's liability insurance (säljaransvarsförsäkring) — is taken out by the seller in a house sale and covers the financial claims a buyer can bring against the seller if a hidden defect is discovered after possession. Under the Swedish Land Code a house seller is liable for hidden defects for ten years — a long time to carry a risk that can amount to hundreds of thousands of kronor.
Good to know
The policy covers the seller's liability towards the buyer. It is not a guarantee that the house is free of defects, and it gives the buyer no insurance cover of their own — the buyer's claim is assessed against the policy's terms and exclusions.
02What it covers — and what it doesn't
Coverage varies widely between insurers and package levels. The basic principle: defects that existed at purchase, could not be discovered during the inspection and were not expected given the house's age and condition. But the exclusion list is long — and that is where policies differ:
Defects noted in the inspection report. Everything the inspector remarked on, or flagged as a risk, is excluded. The report literally defines what can become a “hidden” defect.
Wet rooms and bathrooms. Often limited or excluded entirely — even though bathroom moisture damage is the most common dispute. Check this clause first.
Electrical, plumbing and installations. Rarely included at the basic level. Some insurers offer add-ons covering installations — at a higher premium.
Defects the seller knew about. If the seller deliberately concealed a defect, the insurance does not apply. The claim is then directed at the seller personally.
Age deductions and excess. Payouts are often reduced by age deductions for the building component's age, plus an excess. Compensation is usually capped at a maximum amount.
03What does it cost?
The premium is paid once and covers the entire ten-year liability period. The price depends on the house's age, size and the chosen level of coverage:
| Level | Coverage | Typical price |
|---|---|---|
| Basic | Building structure, excl. wet rooms and installations | SEK 6,000–10,000 |
| Mid | Extended cover, often partial wet-room protection | SEK 10,000–15,000 |
| Full | Incl. installations and higher compensation cap | SEK 15,000–20,000 |
Almost all insurers require an approved pre-purchase inspection by a certified inspector before issuing the policy — often no more than a year old.
04Houses vs bostadsrätter — completely different rules
Hidden-defect insurance is in practice a product for house sales. The reason is legal:
| House | Bostadsrätt | |
|---|---|---|
| Seller's liability | 10 years | 2 years |
| Law | Land Code (Jordabalken) | Sale of Goods Act (Köplagen) |
| Insurance common? | Yes, often offered via the agent | Rare |
If you are buying a bostadsrätt, the seller's liability is short and the apartment is almost always sold “as is”. Read our guide on hidden defects in a bostadsrätt for the rules that apply there.
05As a buyer: use the insurance to your advantage
- Ask the agent whether the seller has taken out hidden-defect insurance — and ask to see the terms, not just the insurer's name
- Check the exclusions for wet rooms, electrical and installations in particular — that's where the most expensive damage occurs
- Read the inspection report the policy is based on: everything noted there is excluded from cover
- Note the compensation cap, excess and age deductions — they determine how much is actually paid out
- No insurance? Then the seller carries the risk personally — factor in the seller's ability to pay if a dispute were to arise
06Insurance or not — the pre-purchase review decides
Hidden-defect insurance makes a dispute manageable — but it doesn't prevent one. The most expensive defects are often visible in the documents already: moisture notes in the inspection report, risk constructions, renovations without certificates and neglected maintenance. Find them before you bid and you avoid both the dispute and the surprise.
The inspection report. Defines what is discoverable — and therefore what can never become a hidden defect. Read every remark.
The seller's disclosure list. Known defects and past damage must be declared here. What the seller has disclosed you cannot later claim was hidden.
Renovation certificates. Wet-room certificates and electrical qualifications separate a professional renovation from future damage.
Frequently asked questions
Who takes out hidden-defect insurance — the buyer or the seller?
The seller. The product is often called seller's liability insurance (säljaransvarsförsäkring) and protects the seller against financial claims from the buyer during the liability period — ten years for houses. As a buyer you cannot take it out yourself, but you still benefit from its existence: it means there is a counterparty able to pay if a hidden defect is discovered.
What does hidden-defect insurance cost?
For a house it normally costs between SEK 6,000 and 20,000 as a one-off premium, depending on the house's age, size and the level of coverage. An approved pre-purchase inspection (överlåtelsebesiktning) is usually required before the policy can be issued.
Does hidden-defect insurance cover bathrooms and wet rooms?
Often only partially. Many policies limit or completely exclude wet rooms, even though bathroom moisture damage is the most common and most expensive type of claim. Read the terms carefully — a wet-room exclusion can make the policy almost worthless in practice.
Is there hidden-defect insurance for a bostadsrätt?
Versions exist, but they are rare. The seller's liability for a bostadsrätt is only two years under the Sale of Goods Act — compared with ten years for houses — and apartments are almost always sold ”as is”, which makes the insurance less relevant. A bostadsrätt buyer's protection lies in the review before the purchase.
Does the insurance apply if the seller knew about the defect?
No. If the seller deliberately concealed a defect or provided incorrect information, the insurance normally does not apply — the claim is then directed at the seller personally. The policy only covers defects the seller was unaware of.
Should I as a buyer care about the hidden-defect insurance?
Yes, for two reasons. If it exists, you know there is money available should a hidden defect appear. If it doesn't, the seller carries the entire risk personally — and then it is even more important that you review the inspection report and documents carefully before bidding, so you avoid a dispute altogether.
Find the risks before they become an insurance claim
Bokoll reads the inspection report, the disclosure list and the other documents straight from the Booli link — flagging moisture notes, risk constructions and uncertified renovations with page references to the source documents. So you know what you're buying before you bid.