Home Insurance Explained: Buildings, Contents and Cover

What is home insurance?

Home insurance is a general term covering two related but separate types of protection: buildings insurance and contents insurance. Buildings insurance covers the physical structure of your home — walls, roof, windows, fitted kitchens and bathrooms, and permanent fixtures — against damage from events such as fire, storms, flooding, subsidence, and escape of water. Contents insurance covers the things inside your home, such as furniture, electronics, clothing and personal belongings, against theft, accidental damage and similar perils.

Many insurers offer a combined buildings and contents policy, which is often simpler and can work out more convenient than running two separate policies, though it isn't always necessary. If you rent your home, you generally won't need buildings cover because that's usually the landlord's responsibility, but contents insurance is still worth considering to protect your own possessions.

Who needs home insurance?

If you have a mortgage, your lender will almost always require you to have buildings insurance in place as a condition of the loan, since the property is their security. Homeowners without a mortgage aren't legally required to insure their home, but given the cost of rebuilding a property after a serious fire or flood, most choose to do so anyway.

Tenants and lodgers don't usually need buildings cover but can benefit from contents insurance, particularly if they own valuable electronics, furniture or sentimental items. Homeowners with high-value possessions, listed buildings, or properties in flood-risk areas may need to look at specialist or enhanced cover rather than a standard policy, as standard insurers sometimes restrict or decline cover in these circumstances.

What's typically covered and excluded

Standard buildings and contents policies generally cover fire, lightning, explosion, storm and flood damage, escape of water or oil, subsidence, theft or attempted theft, and damage caused by falling trees or aerials. Many policies also include liability cover, which protects you if someone is injured on your property or if you accidentally damage a neighbour's property.

Exclusions vary by insurer but commonly include wear and tear, gradual deterioration, damage caused by poor maintenance, pest infestations, and loss or damage while a property is left unoccupied for an extended period. High-value items like jewellery, art or bicycles may only be covered up to a set limit unless specified separately on the policy, so it's worth checking single-item limits against what you actually own.

• Usually covered: fire, storm, flood, theft, escape of water, subsidence, accidental damage (if added)
• Often excluded or limited: wear and tear, unoccupancy beyond a set number of days, high-value single items above the policy limit, pre-existing damage

What affects the price of home insurance

The cost of a home insurance policy depends on a combination of factors relating to the property and the policyholder. These include the rebuild cost or sum insured, the age and construction type of the property, its location and local crime or flood statistics, the security measures in place (such as alarms and locks), and the claims history of the applicant.

Other factors that insurers typically weigh up include the level of cover chosen, any voluntary excess you select, whether the property is left unoccupied during the day, and whether you have pets or run a business from home. Bundling buildings and contents together, maintaining a claims-free history, and improving home security can all influence the price an insurer offers.

Tips for choosing a policy

When comparing home insurance, look beyond the headline price and check the level of cover, the excess structure, and any exclusions that matter to your circumstances. Make sure your contents sum insured realistically reflects the cost of replacing everything you own, and check whether valuable items need to be listed separately.

It's also worth reviewing how claims are handled, whether accidental damage is included or needs adding as an optional extra, and whether the policy covers temporary accommodation if your home becomes uninhabitable. Reassessing your cover annually, especially after major purchases or renovations, helps ensure you aren't under- or over-insured.

How to get a quote

If your property or circumstances mean a standard policy isn't quite right — for example because of its construction, location, or your claims history — a specialist broker can help find a suitable option. Complete the short enquiry form on this page and an FCA-authorised specialist broker will be in touch to discuss your needs; there's no obligation to proceed.

Frequently asked questions

Do I legally need home insurance?

There's no legal requirement to have home insurance, but mortgage lenders almost always require buildings cover, and most homeowners choose it to protect against the cost of rebuilding or repairing their home.

What's the difference between buildings and contents insurance?

Buildings insurance covers the structure of your home, while contents insurance covers your belongings inside it. Many providers offer them together as a combined policy.

Does home insurance cover flooding?

Many standard policies include flood cover, though insurers in high flood-risk areas may apply higher excesses or premiums, or decline cover; the Flood Re scheme can help some homeowners access affordable cover in these cases.

Will my policy cover accidental damage?

Accidental damage is often an optional add-on rather than a standard inclusion, so check your policy wording if you want cover for things like spilled drinks on carpets or broken windows.

What happens if my home becomes unoccupied?

Most standard policies restrict cover if a property is left unoccupied beyond a set number of consecutive days (commonly around 30-60), so you may need to notify your insurer or consider unoccupied property insurance for longer absences.