Building Defects Insurance

Building Defects Insurance is statutory insurance that, when it comes to apartment blocks, must be taken out for all new construction of permanent housing as well as in the event of such reconstruction, extensions and repairs to permanent housing that require an application for planning permission, considerably extending the building’s useful lifespan. (Regarding houses, see below.)

Building Defects Insurance covers defects or damage due to defects that have been discovered and reported during the insurance period. The insurance period is 10 years from the date of the final inspection of the building. There are several levels of excess to choose between for apartment blocks and other buildings. The insurance remains with the building and therefore continues to be valid even after a change of ownership. Försäkrings AB Bostadsgaranti is the insurance provider.

According to law, it is the future proprietor who is responsible for making sure Building Defects Insurance has been taken out before construction commences.

Building Defects Insurance for houses

Special rules stated in the Swedish Building Defects Insurance Act about Building Defects Insurance for houses have applied since 1 January 2005. Note that these rules also apply for houses with tenant ownership.

Building Defects Insurance must be taken out in the event of new construction of all houses and also when certain changes are to be made for which planning permission is required. In the latter case, the Building Committee (byggnadsnämnden) will assess whether Building Defects Insurance is needed.

Building Defects Insurance covers defects and damage due to defects that have been discovered and reported during the insurance period. The insurance period is 10 years from the date of the final inspection of the building.

The excess is 0.5 price base amounts per damage incurred, with a maximum 1.5 price base amounts during the entire 10-year period. Damage under 0.2 price base amounts will not be compensated for.

According to law, it is the future proprietor who is responsible for making sure Building Defects Insurance has been taken out before construction commences.

Försäkrings AB Bostadsgaranti is the insurance provider.

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>> Building Defects Insurance (word)