Why is home insurance important in Sweden and what does it cover?

Home insurance ("hemförsäkring") is required by most banks to approve a mortgage ("bolån") – without it you won't get your loan disbursed. It protects against fire, water damage, burglary, and liability. For co-op apartments ("bostadsrätter") you need a co-op supplement ("bostadsrättstillägg") covering interior maintenance. For homeowners you need home or property insurance ("villaförsäkring"). Make sure the insurance is effective from the handover date ("tillträdesdatum"). The cost is relatively modest compared to the protection it provides.