Home Insurance Buyer's Guide: Buildings, Contents, and How to Get Cover Right
Home insurance divides into buildings cover (the structure) and contents cover (your possessions). Many households under-insure one or both. This guide explains what each covers, how to calculate the right sum insured, the key questions to ask before buying, and how to avoid common mistakes that lead to refused claims.
Buildings vs contents: what each covers
Buildings insurance
Covers the structure you own
- Walls, roof, floors, foundations
- Permanent fixtures: fitted kitchen, bathroom suite
- Windows, doors, built-in wardrobes
- Garages, outbuildings, boundary walls
- Underground pipes and cables (sometimes)
Required by most mortgage lenders. Leasehold flat owners — check whether the freeholder's buildings policy covers your obligations.
Contents insurance
Covers your possessions
- Furniture, appliances, electronics
- Clothing, jewellery, art
- Bicycles (check limits and whether away from home is included)
- Cash and valuables (often with sub-limits)
- Food in freezers (on some policies)
Applies to possessions whether at home or temporarily away (subject to policy terms). Check single-article limits for high-value items.
Getting the sum insured right
Buildings: The buildings sum insured should be the rebuild cost — what it would cost to demolish and rebuild the property from scratch, including professional fees — not the market value. In many areas the rebuild cost is lower than the market value; in some it is higher (particularly older or listed properties). Use the Association of British Insurers' rebuild cost calculator. See our article on rebuild costs.
Contents: Walk through every room and estimate replacement cost. Include garden furniture, tools, and items in outbuildings. The average UK household has contents worth £35,000–£55,000. Most under-insured policies have a contents sum of £15,000–£20,000. If you cannot list everything, use a home contents calculator. For high-value items (jewellery, watches, instruments, art), check single-article limits and list them separately if necessary. See our contents valuation guide.
Questions to ask before buying
- Is the buildings policy on a rebuild cost basis, and does it include index-linking to adjust for construction cost inflation at renewal?
- Is contents on a new-for-old or indemnity basis? Indemnity is cheaper but leaves you out of pocket on older items.
- What is the single-article limit for contents? If you own items worth more than the limit, they may need to be listed separately.
- Is accidental damage included as standard or an optional extra? Are buildings and contents accidental damage separate add-ons?
- What is the excess — is it per claim, per section, or per event? A storm damaging both buildings and contents may generate two excesses under a combined policy.
- Is personal possessions cover (items away from home) included, and does it cover items abroad?
- Does the policy cover working from home — are business equipment and employer liability included or excluded?
Home insurance FAQ
Frequently asked questions
- No. Buildings insurance is the landlord's responsibility — it covers the structure of the property, which the landlord owns. Tenants need contents insurance for their own possessions and personal liability. Some insurers also offer tenant's liability cover (to protect against accidental damage to the landlord's fixtures and fittings). See our home insurance for renters article and our renters vs landlords insurance guide.
- New-for-old cover replaces a damaged or stolen item with a new equivalent — it does not deduct for wear and age. Indemnity cover pays you the current second-hand value of the item — what it was worth at the time of the loss, accounting for age and condition. New-for-old is standard on most policies; indemnity cover is cheaper but leaves you out of pocket on older items. Check which basis your policy uses. See replacement cost and actual cash value in the glossary.
- Standard home insurance policies cover damage from sudden, unforeseen events — fire, flood, storm, burst pipes, theft. Accidental damage is a separate extension that covers unintentional damage you cause yourself — a smashed TV, a spilled drink on a laptop, a child's crayon on the walls. It adds to the premium but covers a broader range of everyday incidents. Some policies include it as standard; others require you to add it specifically for buildings and contents separately.
- If you insure your contents for £20,000 but your actual contents are worth £40,000, and you make a claim for £5,000, the insurer may apply the average clause and pay only £2,500 — because you only insured 50% of the actual value. This is one of the most common and most costly mistakes in home insurance. See our guide on under-insurance and our article on valuing your contents.