# Contents vs buildings insurance — what does each cover?

> Compare · Last reviewed 26 May 2026

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## Quick answer

Buildings insurance covers the structure of your home — walls, roof, floors and permanent fixtures. Contents insurance covers the things inside that you'd take with you if you moved.

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Most homeowners need both, often bundled together. Tenants typically only need contents — the landlord arranges buildings cover. Leaseholders often have buildings cover arranged by the freeholder / management company through the service charge.

## Contents insurance vs Buildings insurance

| Criterion | Contents insurance | Buildings insurance |
| --- | --- | --- |
| What it covers | Furniture, electronics, clothes, valuables, personal belongings | Walls, roof, floors, ceilings, fixed kitchens & bathrooms, permanent fixtures |
| Who normally needs it | Anyone with possessions worth replacing — owners and tenants | Property owners; leaseholders via service charge; mortgage lenders usually require it |
| Sum insured basis | Replacement (new-for-old) value of your stuff | Rebuild cost (NOT market value) |
| Standard perils | Theft, fire, flood, escape of water, accidental damage (if added) | Fire, flood, storm, subsidence, escape of water |
| Common add-ons | Personal possessions away from home, accidental damage, bicycles, high-value items | Accidental damage, alternative accommodation, legal expenses |
| Lender requirement | No | Yes — mortgage lenders typically require it |

## When Contents insurance suits

- You're a tenant in private or social housing
- You're a homeowner — usually combined with buildings cover
- You have valuable items (jewellery, bikes, cameras) to specify
- You want away-from-home cover for phones, laptops or bikes

## When Buildings insurance suits

- You own a freehold home
- Your mortgage requires it (most do)
- You're a freeholder of a block (you're responsible for building cover)
- Your lease puts the buildings insurance obligation on you

## Frequently asked questions

### I'm a leaseholder — do I need buildings insurance?

Usually no — your lease typically requires the freeholder or management company to arrange it, and you pay through the service charge. Check the lease. You still need your own contents insurance.

### What does 'rebuild cost' mean?

The cost to demolish and rebuild your home as it is today, including professional fees. It's almost always lower than the market value. The RICS Building Cost Information Service has a free calculator.

### Is flood damage covered as standard?

Most standard policies cover flood, but check carefully — some high-risk properties may need cover via the government-backed Flood Re scheme.

## Sources

- [GOV.UK — Consumer protection rights](https://www.gov.uk/consumer-protection-rights)
- [ABI — Home insurance](https://www.abi.org.uk/products-and-issues/topics-and-issues/home-insurance/)
- [Flood Re](https://www.floodre.co.uk/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.