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