Rental Insurance Packages for Subletting?
A trend that recently has flourished in the rental industry is the so-called "Trygghetsförsäkringar" Insurance. Many sites say they offer the landlord an add-on insurance with better terms than a standard home insurance during the rental. If you look at the terms more closely, it turns out that these policies do not really cover those things you would hope and are offered by the company to circumvent rental laws.
What are they?
Many companies in the rental industry claim to offer "Trygghetsförsäkringar", but few actually spell out what they cover. One rental company offers "Trygghetsförsäkringar" Insurance which costs 15% of the monthly rent and then offers something that they call "Security Package" offered through an insurance company. But despite this security package, a standard home insurance is still required on the home. They state that "Trygghetsförsäkringar" covers more than a standard home insurance. But the terms of the "Trygghetsförsäkringar" Insurance say something different.
Are They for Real?
Because we get so many questions about why we do not sell "Trygghetsförsäkringar", we would once and for all make it clear that they do not bring any benefits at all that a regular home insurance does not already provide. When looking at what the terms of the "Trygghetsförsäkringar" mean, they say, among other things, that the insurance applies to the property and furnishings as stipulated in existing home insurance. Then there is always a list of exceptions where the insurance does not apply. What all exceptions boil down to is that the "Trygghetsförsäkringar" Insurance does not offer any additional protection beyond what a standard home insurance does abnormal wear and tear occurs in the home. When we compared "Trygghetsförsäkringar" with, for example, regular home insurance at Folksam, there has been no difference in what they cover. What is also evident from all exceptions is that in cases where home insurance does not cover a potential claim, the"Trygghetsförsäkringar" does not either.
Another variation that several rental sites do is to keep the deposit as collateral for non-payment by the tenant. There are many who list in their terms that the deposit can be used as rent payment from the rental side in case of non-payment of the rent by the tenant. This is part of their so-called "rental guarantees". The usual thing is that the deposit is linked to the guarantee that the rental company offers. This means that the deposit that the tenant has paid at the start of the rental period is converted into a rent payment from the tenant in case of non-payment. The landlord's ability to receive compensation for any damage incurred in the dwelling (which the deposit represents a collateral for) is therefore significantly reduced.
We consider these insurance packages a way for rental companies to earn even more money from the landlords without providing a real benefit. It is similar to electronics stores that sell insurances to unwitting consumers to cover their newly purchased TV (home insurance covers the same situations). Therefore, we do not offer any insurance packages. We prefer to be completely transparent with our customers and therefore have no hidden fees or charges on rental levels. You can read more about the services we offer.