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