# Home insurance explained: buildings, contents and combined cover

> Insurance · Last updated 4 July 2026

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## Quick answer

Buildings insurance covers the structure — required with a mortgage. Contents insurance covers belongings inside. Combined policies are convenient but not always cheapest; check sums insured, accidental damage and away-from-home limits.

Home insurance is two products that are often bundled. Under-insuring contents or using the wrong rebuild value on buildings cover are the costliest mistakes — not the premium itself.

## Key facts

- Buildings sum insured should be rebuild cost, not market value or purchase price
- Contents cover needs room-by-room valuation — single-item limits often cap jewellery and bikes at £1,500–£2,500
- Flood Re helps insurers offer affordable flood cover in high-risk areas
- FCA fair pricing rules apply to home insurance renewals as well as motor

## Buildings cover

Covers walls, roof, floors, permanent fixtures and outbuildings against fire, flood, storm and subsidence (subject to policy terms). Your mortgage lender sets minimum requirements.

Use the BCIS rebuild calculator or insurer tools — rebuilding costs differ sharply from sale prices.

## Contents cover

Covers furniture, electronics, clothing and valuables. New-for-old is standard on many policies. List high-value items separately if they exceed single-item limits.

Personal possessions away from home is an optional extension — essential for phones and laptops carried daily.

## Frequently asked questions

### Do I need contents insurance as a renter?

Your landlord insures the building — not your belongings. Contents cover is your responsibility.

### Does home insurance cover bikes?

Often only at home unless you add away-from-home cover or list the bike separately.

## Primary source

https://www.abi.org.uk/products-and-issues/topics-and-issues/home-insurance/

## Related

- [How to cut home insurance](https://moneyguide.org.uk/insurance/how-to-cut-home-insurance/)
- [Contents vs buildings insurance](https://moneyguide.org.uk/compare/contents-vs-buildings-insurance/)
- [Buildings and contents & Flood Re](https://moneyguide.org.uk/insurance/buildings-and-contents-flood-re/)
- [Featured offers*](https://moneyguide.org.uk/offers/)

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