Home insurance usually comes in two parts. Whether you need one or both depends on whether you own, rent or have a mortgage.
Key things to know
- Buildings insurance covers the structure: walls, roof, floors and permanent fixtures.
- Contents insurance covers your belongings, from furniture to clothes and electronics.
- Mortgage lenders usually require buildings insurance; renters generally need contents only.
- Set the buildings sum insured to the cost of rebuilding, not the market value.
UK home insurance is usually split into buildings cover and contents cover. Some people need both, some only one.
What each covers
| Buildings insurance | Contents insurance | |
|---|---|---|
| Covers | Structure and permanent fixtures | Your belongings |
| Examples | Roof, walls, fitted kitchen, bathroom suite | Furniture, clothes, electronics, jewellery |
| Who needs it | Homeowners, often required by mortgage lenders | Homeowners and renters |
Combined policies
Many insurers sell both together as one policy, which can be simpler and sometimes cheaper. Make sure each part has the right sum insured.
Setting the sums insured
- Buildings: use the rebuild cost, which is often different from what the house would sell for. Your mortgage valuation may give a figure, or use an online rebuild calculator.
- Contents: add up the cost of replacing everything you own, room by room. People often underestimate this.
Watch for
If you’re underinsured, an insurer may reduce a claim payout in proportion. For example, if your contents are worth twice the sum insured, you might receive only half of what you claim.
Common add-ons
- accidental damage
- personal possessions cover for items outside the home
- legal expenses cover
- higher limits for high-value items
Worth doing
Photograph or film each room and keep receipts for valuable items. It makes claims faster and helps you set the right contents sum.
Choosing the right cover
Start with what you’re responsible for: renters need contents cover, owners need buildings cover too unless the freeholder provides it. Our guides to the excess and using comparison sites help you compare policies properly.
Questions answered
Do I need buildings insurance in a flat?
Often the freeholder or management company insures the building, with the cost in your service charge. Check your lease.
What is accidental damage cover?
An add-on that covers sudden, unintended damage, such as spilling paint on a carpet. It’s not always included as standard.
Are belongings covered outside the home?
Only if you add personal possessions cover, which protects items like phones and jewellery away from home.
This guide is general information, not financial or insurance advice. Policies differ, so always read your own policy documents and check with your insurer. If you have a complaint, your insurer’s complaints process and the Financial Ombudsman Service can help.