Buying an apartment to rent out is a smart way to build wealth. Rents have climbed steadily in recent years, with average asking rents in the capital pushing around 250,000 HUF per month for many city flats. But there is a quiet trap many landlords fall into: they assume that the building’s insurance and the tenant’s deposit are enough to protect their investment. In reality, that misunderstanding can leave you thousands of forints out of pocket after just one unlucky incident.
The big misunderstanding: “The building is insured, so I’m covered… right?”
Many apartment owners live in buildings that have a társasház, or shared building insurance. That policy typically protects the structure and common areas: roof, main walls, stairwells, shared pipes and cables.
However, experts consistently point out that a building policy does not normally cover your own internal finishes, such as flooring, built-in furniture and kitchen units, your appliances and fittings, damage caused by your tenant inside the flat, or your own liability inside the apartment if a guest is injured.
Separate home insurance for the individual unit is recommended even when the building itself is insured.
Despite this, surveys show that while roughly two-thirds to three-quarters of homeowners have some form of home insurance, a significant share are underinsured or unsure what their policies actually cover. That uncertainty is even more common when the apartment is rented out.
Why the tenant’s deposit is not your safety net
On paper, a one- or two-month deposit feels like a nice buffer. In a flat renting for around 250,000 HUF per month, that might mean 250,000–500,000 HUF set aside as security.
Now compare that to some common real-life scenarios: a small kitchen fire destroys cabinets, tiles and appliances; a bathroom leak damages not only your flat but the neighbour’s ceiling below; or a storm breaks windows and lets in water that ruins flooring and built-in wardrobes.
In these cases, repair costs can easily reach hundreds of thousands or even several million forints. The deposit might cover a fraction of the damage, and it does nothing for lost rent while the flat is being repaired.
Local insurer and broker articles repeatedly warn that without proper cover, both landlords and tenants end up paying for such events from their own pocket.
What good rental apartment insurance should actually do
The good news is that you do not need a completely separate exotic landlord product to protect a rental apartment. In most cases, a well-chosen home insurance policy with the right options can provide very solid protection for a rented unit. When you plan to rent out your apartment, look for a policy that clearly covers several key areas.
1. The structure and internal fixtures of your unit
This includes internal walls, floors and ceilings; built-in kitchen and bathroom furniture; doors, windows, radiators and internal pipes.
These elements are usually your responsibility as the owner, not the tenant’s.
2. Your contents in the flat
If you rent the apartment furnished, make sure the policy lists or includes cover for your furniture, lighting and carpets, as well as appliances such as a washing machine, fridge, oven or dishwasher.
Insurance professionals often stress that when you rent out a furnished home, damage to your own furnishings can quickly become one of the biggest costs in a claim.
3. Liability cover
If a burst pipe in your flat floods the neighbour below, or a loose tile injures a guest, liability insurance can be what stands between you and a very expensive legal bill.
Guides on landlord and tenant insurance emphasise that both sides should pay attention to liability cover when choosing a policy.
4. Optional extras for landlords
Some insurers also offer extra protection for tenant-related risks, such as damage caused by tenants, legal costs in certain disputes and, in some cases, cover for temporary loss of rent if the flat becomes uninhabitable after an insured event.
These options vary widely by insurer, so it is important to read the conditions carefully or ask a broker to compare products.
How much does proper protection usually cost?
Official data from the central bank’s home insurance index shows that the average annual premium for a full home insurance policy, including both building and contents, has risen into the 60,000–66,000 HUF per year range in recent years.
Other analyses note that owners in apartment blocks often pay less than the national average, sometimes around 20,000-40,000 HUF per year, depending on coverage levels and the insured value.
Many consumers still underestimate the true rebuilding cost of their property, meaning their sum insured is too low if a serious claim happens.
For a landlord receiving around 250,000 HUF per month in rent, even a 60,000 HUF annual premium is less than one week’s rent spread over a full year. In exchange, you are protecting an asset that could be worth tens of millions of forints, plus the rental income it generates.
The key is not to find the absolute cheapest policy, but to choose one that correctly reflects the real value of the apartment, explicitly allows for rental use and includes the right mix of building, contents and liability cover.
Simple steps to avoid a very expensive surprise
If you already own a rental apartment, there is a quick checklist you can run through before you sign the next tenancy agreement.
Ask the building manager what the existing társasház policy covers and what it does not.
Check your own home insurance and confirm whether you have told the insurer that the flat is rented out, and whether tenant-related risks are covered.
Review the insured sum and ask yourself whether it could really rebuild or repair the apartment after a major event.
Clarify in the lease who insures what, including the apartment itself, your furniture and the tenant’s belongings.
Compare offers during the annual home-insurance switching campaigns. Competition has pushed insurers to improve coverage and price in recent years.
A couple of phone calls and a short policy review can literally be the difference between a manageable deductible and a six- or seven-figure repair bill.
Quick Q&A: insurance for rental apartments – 5 key answers
1. Is the building’s insurance enough if I rent out my apartment?
No. Shared building insurance usually covers only the structure and common areas, not your internal finishes, contents or most tenant damage.
2. Do I really need extra insurance if I already hold a deposit?
Yes. A one- or two-month deposit is tiny compared to the cost of major water, fire or storm damage, and it does not cover your liability or longer-term loss of rent.
3. Who should have insurance, the landlord or the tenant?
Ideally both. The owner insures the apartment and any furniture they provide, while the tenant can insure their own belongings. This should be clarified in the rental contract.
4. How expensive is proper insurance for a rental apartment?
Many full home insurance policies cost in the range of about 60,000–66,000 HUF per year on average, often less for flats, which is only a small fraction of typical annual rent.
5. What is the single most important step I should take now?
Call your insurer or broker, tell them clearly that the apartment is rented out and ask them to confirm in writing what is and is not covered. Adjust the policy if needed before the next tenant moves in.