Buildings and Contents
A home has two forms of value.
There is the physical building, including its walls, roof and permanent fixtures. Then there are the possessions that make the property personal and usable.
Buildings insurance and contents insurance protect these different forms of value.
They may be arranged separately or through one combined home insurance policy. However, each section has its own cover limits, conditions, excesses and exclusions.
What Is Buildings and Contents Insurance?
Buildings and contents insurance is often called home insurance.
It combines two distinct types of protection.
Buildings insurance is designed to cover the physical structure of the property. It can also cover permanent fixtures and fittings.
Contents insurance is designed to cover movable belongings. A useful test is to imagine turning the home upside down. Items that would fall out are generally contents.
A combined policy can make administration simpler. However, having one insurer does not make every event or possession automatically covered.
The policy wording remains important.
What Does Buildings Insurance Cover?
Buildings insurance usually covers the main structure of an insured home.
This can include:
- External and internal walls
- The roof
- Floors and ceilings
- Windows and doors
- Fitted kitchens
- Fitted bathrooms
- Built-in wardrobes
- Garages and permanent outbuildings
- Pipes, drains and fixed heating systems
- Permanent garden structures, where included
Policies commonly cover insured events such as:
- Fire
- Flood
- Storm damage
- Escape of water
- Subsidence
- Vandalism
- Theft-related damage
- Vehicle or falling tree impact
Cover varies between insurers. Some events may have specific excesses, limits or conditions.
Gradual deterioration is not normally treated in the same way as sudden insured damage.
For independent guidance, MoneyHelper explains how buildings insurance works.
What Does Contents Insurance Cover?
Contents insurance covers possessions belonging to you or members of your household.
Depending on the policy, this may include:
- Furniture
- Televisions
- Computers
- Clothing
- Carpets and curtains
- Kitchen equipment
- Books
- Jewellery
- Bicycles
- Personal belongings
- Garden furniture
- Freestanding appliances
Standard contents cover usually applies to belongings kept at the insured address.
Cover away from home may require personal possessions protection. This can apply to items such as mobile phones, laptops, watches or jewellery.
Individual valuable items may need to be listed separately. Insurers may apply both:
- A total valuables limit
- A single-item limit
A contents sum insured should represent the cost of replacing all insured belongings. Underestimating that value can leave a household underinsured.
Buildings Insurance Versus Contents Insurance
| Point | Buildings insurance | Contents insurance |
|---|---|---|
| Main purpose | Protects the property’s structure | Protects household belongings |
| Typical examples | Roof, walls and fitted kitchen | Furniture, clothing and electronics |
| Mortgage requirement | Normally required by the lender | Usually optional |
| Basis of cover | Property rebuild cost | Replacement value of belongings |
| Relevant to renters | Usually arranged by the landlord | Can be arranged by the tenant |
| Relevant to leasehold flats | Often arranged under a block policy | Usually arranged by the leaseholder |
| Accidental damage | May be standard or optional | May be standard or optional |
| Excess | Applies to eligible claims | Applies to eligible claims |
Do You Need Buildings Insurance for a Mortgage?
Buildings insurance is not generally required by law.
However, a mortgage lender will normally require suitable buildings insurance because the property is its security for the loan.
The policy often needs to begin when you become legally responsible for the property. In England and Wales, this may be from the exchange of contracts rather than completion.
Your solicitor or conveyancer can confirm the relevant point during the purchase.
The lender may specify minimum requirements. However, it cannot normally require you to buy its own insurance policy.
Your cover should remain active throughout the mortgage term.
You can find further mortgage-related information through Connect Mortgages’ guide to buildings and contents insurance.
Is Contents Insurance Required by a Mortgage Lender?
Contents insurance is not normally a mortgage condition.
The lender’s security is the building rather than your furniture, clothing or electrical items.
However, replacing a complete household after a fire, flood or serious theft could be expensive. Contents insurance can transfer part of that financial risk to an insurer.
The decision should be based on what you own, how much replacement would cost and what losses you could fund yourself.
How Much Buildings Insurance Do You Need?
Buildings insurance should normally reflect the property’s estimated rebuild cost.
The rebuild cost is not the same as:
- The purchase price
- The current market value
- The mortgage balance
- The amount you paid for improvements
Market value includes factors such as location and land value. Rebuild cost considers the expense of reconstructing the property.
This may include:
- Demolition
- Debris removal
- Labour
- Building materials
- Professional fees
- Compliance with current building standards
A rebuild estimate may appear in a valuation or survey report. Some policies use a standard maximum buildings limit instead.
Unusual construction, listed status or extensive alterations may require a more detailed assessment.
How Much Contents Insurance Do You Need?
The contents sum insured should reflect the full replacement value of your belongings.
A room-by-room inventory can make the estimate more accurate.
Consider:
- Living-room furniture and electronics
- Beds, wardrobes and bedroom contents
- Clothing and footwear
- Kitchen appliances and equipment
- Computers and home-office equipment
- Jewellery and watches
- Sports equipment
- Garden furniture
- Items stored in garages or sheds
- Children’s belongings
- Collectables and specialist items
Small items can create a significant combined value.
Do not base the figure on resale value. The relevant amount is generally what replacement would cost, subject to the policy’s settlement terms.
What Is a Home Insurance Excess?
An excess is the amount you must contribute towards an accepted claim.
A policy can include:
- A compulsory excess set by the insurer
- A voluntary excess chosen by the customer
- A separate excess for particular risks
Subsidence, escape of water and flood claims may have different excesses.
A higher voluntary excess can sometimes reduce the premium. However, it also increases the amount you must pay if you claim.
The excess should therefore remain affordable.
What Is Accidental Damage Cover?
Accidental damage cover protects against certain unexpected incidents caused by accident.
Examples could include:
- Damaging a worktop
- Breaking a television
- Dropping and damaging an insured item
- Putting a foot through a ceiling
- Damaging a pipe while completing DIY work
Accidental damage is not automatically included in every policy.
Buildings and contents accidental damage may be separate options. Exclusions can apply to poor workmanship, gradual damage, pets, tenants or business use.
What Is Trace and Access Cover?
Trace and access cover can help meet the cost of locating a water or oil leak.
For example, a contractor may need to remove flooring or open a wall to find a leaking pipe.
The cover usually relates to locating and reaching the source. It does not necessarily pay to repair the failed pipe itself.
The amount available and the reinstatement terms vary by policy.
What Is Alternative Accommodation Cover?
Alternative accommodation cover may help if an insured event makes your home unfit to live in.
Depending on the wording, it can contribute towards:
- Temporary rented accommodation
- Hotel costs
- Storage costs
- Additional kennel or cattery fees
A maximum amount or percentage of the buildings sum insured may apply.
The insurer will normally decide whether the property is uninhabitable under the policy terms.
What Is Home Emergency Cover?
Home emergency cover can provide assistance following certain urgent household incidents.
Examples may include:
- Complete heating failure
- Plumbing emergencies
- Electrical failure
- Lost keys
- Pest infestations
- Roof damage creating an immediate risk
It is often offered as an optional addition.
This cover is not a substitute for regular maintenance. It may also contain call-out limits, waiting periods and exclusions for pre-existing faults.
What Is Legal Expenses Cover?
Home legal expenses cover may contribute towards legal costs for certain insured disputes.
Depending on the policy, it may include:
- Employment disputes
- Consumer contract disputes
- Property disputes
- Personal injury claims
- Identity fraud support
Cover normally depends on the claim having reasonable prospects of success.
There may also be reporting deadlines, limits and approved legal representatives.
What Is Usually Excluded?
Every policy is different. However, common exclusions can include:
- Wear and tear
- Gradual deterioration
- Poor maintenance
- Existing damage
- Deliberate damage by an insured person
- Unreported business use
- Undeclared renovations
- Damage during extended unoccupancy
- Vermin or insect damage
- Mechanical breakdown
- Losses below the policy excess
- High-value items above undeclared limits
A claim can also be affected by inaccurate information supplied during the application.
You should answer insurer questions carefully and report material changes.
Insurance for Leasehold Flats
A freeholder or property management company often arranges buildings insurance for an entire block.
The leaseholder may contribute through the service charge.
Before arranging separate buildings cover, check:
- The lease
- The block insurance schedule
- The level of cover
- The excess
- Which fixtures are included
- Whether improvements must be declared
A leaseholder may still need contents insurance for personal possessions.
Improvements made inside the flat may also need special consideration.
Insurance for Renters
Tenants are not normally responsible for insuring the landlord’s building.
However, a landlord’s policy does not usually protect the tenant’s belongings.
A tenant may therefore consider contents insurance for furniture, clothes, technology and other possessions.
Some policies also offer tenants’ liability cover for accidental damage to fixtures or items belonging to the landlord.
Insurance for Landlords
A standard owner-occupier home insurance policy may not be suitable when a property is rented to tenants.
Landlords may need cover that reflects:
- The tenancy arrangement
- Furnished or unfurnished use
- Rental income
- Landlord-owned contents
- Property owners’ liability
- Legal expenses
- Unoccupied periods
- HMO use
Property owners who receive rent should read our separate guide to landlord insurance.
Buildings Insurance and Mortgage Protection Are Different
Buildings insurance protects the property.
Contents insurance protects possessions.
Neither policy normally pays the mortgage because you become ill, die or lose income.
Those risks fall within personal protection rather than home insurance.
Our guide to mortgage protection insurance explains that distinction.
Arranging Buildings and Contents Insurance
Connect Lifetime can provide access to buildings and contents insurance quotations through The Source.
The available cover, insurer, premium, excess and policy conditions will depend on the information supplied.
You should disclose relevant details accurately. These can include claims history, property use, construction, occupancy and security.
Policy features and monetary limits can change. Your quotation and policy documents will confirm the cover available to you.
Speak with an adviser if you need help understanding your options.
Related Articles
When Do You Need Buildings Insurance?
Rebuild Cost Versus Market Value Explained
When Should You Review Your Home Insurance?
FAQs: Buildings and Contents
Most frequent questions and answers about residential mortgage
No. Contents insurance is normally optional. Without it, you would usually need to fund the replacement of stolen or damaged belongings yourself.
Only where suitable rent guarantee cover applies. Loss of rent after insured property damage is a different policy section.
Homebuyers may need cover from exchange of contracts in England and Wales. Your conveyancer should confirm when responsibility transfers under your purchase agreement.
It may cover damage resulting from a sudden insured event. It does not usually cover deterioration caused by age, poor maintenance or gradual wear.
Only where the policy includes suitable personal possessions or away-from-home cover. Limits and exclusions can apply.
Many policies cover flood damage. However, the excess, conditions and availability can depend on the property’s flood risk and insurer.
Buildings insurance often includes subsidence cover. A larger excess and specific reporting conditions may apply.
Yes. Building work can change the property’s risk. Contact the insurer before structural work, extensions or major renovations begin.
Policies commonly restrict cover after a stated unoccupied period. You should tell the insurer if nobody will live at the property for an extended time.
Cover may be available, but a specialist policy or detailed rebuild assessment may be needed. Construction type and listed status must be disclosed.