# Buildings vs contents insurance explained

> Insurance · Last updated 4 July 2026

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## Quick answer

Buildings insurance covers the structure, roof, walls and permanent fixtures; contents insurance covers belongings you would take when moving. Mortgages require buildings cover; contents is optional but protects furniture, tech and clothes against theft and damage.

Home insurance is two products that are often sold together but serve different purposes. Confusing them can leave you underinsured after a fire, flood or burglary. This guide explains what each covers and how to set sums insured correctly.

## Key facts

- Buildings: structure, roof, walls, floors, fitted kitchens and bathrooms — rebuild cost not market value
- Contents: furniture, clothes, electronics, carpets — replacement cost of everything you own
- Mortgage lenders require buildings insurance from exchange or completion
- Leasehold flats: freeholder often insures building; you buy contents and may pay building premium via service charge

## Buildings insurance

Covers damage to the property structure from fire, storm, flood, subsidence, burst pipes and similar perils. The sum insured should be the rebuild cost — what it would cost to reconstruct the home — not the sale price.

Underinsurance is common: if you insure for £200,000 but rebuild costs £300,000, insurers may reduce any claim proportionally.

Accidental damage to the building is usually an optional extra. Standard cover includes storm damage but may exclude wear and tear.

## Contents insurance

Covers belongings inside the home. Walk room by room and estimate replacement cost at today's prices — not what you paid years ago.

High-value items (jewellery, bikes, watches) may need named limits or separate cover. Away-from-home cover protects items stolen outside the property.

Tenants need contents cover; landlords insure the building. Students may be covered on parents' policies — check before assuming.

## Combined policies and leasehold

Combined buildings and contents policies are convenient and sometimes cheaper. You can buy separately if you only need one type.

In leasehold blocks the freeholder often arranges buildings insurance and recharges via service charge. You still need your own contents policy.

Flood Re helps make flood cover available in higher-risk areas through standard home insurers — see our flood and home insurance guide.

## Frequently asked questions

### Do I need buildings insurance without a mortgage?

Not legally, but rebuilding after a fire without cover could be financially devastating. Contents-only is possible for leaseholders where the freeholder insures the structure.

### Does buildings insurance cover my boiler?

Sudden boiler breakdown may be covered if caused by an insured event; age-related failure often is not. Home emergency cover is a separate add-on.

### What is new-for-old contents cover?

Insurer replaces items with new equivalents regardless of age, subject to policy limits. Indemnity policies deduct wear and tear and pay less.

## Primary source

https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/home-insurance

## Related

- [Home insurance explained](https://moneyguide.org.uk/insurance/home-insurance-explained/)
- [Contents vs buildings compared](https://moneyguide.org.uk/compare/contents-vs-buildings-insurance/)
- [Buildings vs contents FAQ](https://moneyguide.org.uk/answers/what-is-buildings-insurance-vs-contents/)

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