The structure
Walls, roof, ceilings, floors, doors and windows.
Home Insurance Guide
Home vs contents insurance: what’s the difference?
Buildings (home) insurance covers the structure of your home. Contents insurance covers your belongings. Many people need one or the other — and some need both. This guide explains how to choose sensibly.
- ✔ What each policy covers
- ✔ Common exclusions and “gotchas”
- ✔ How to set sums insured
In plain English
Buildings insurance typically covers the fabric of the home (walls, roof, fixed fittings). Contents insurance typically covers movable items you own inside the home (furniture, tech, clothes).
- Homeowners often need buildings cover
- Tenants usually only need contents (unless responsible for building elements)
- Many providers offer combined buildings + contents policies
1) What buildings (home) insurance typically covers
Exact cover varies by provider and policy wording.
Permanent fixtures
Fitted kitchens, built-in wardrobes, bathrooms and plumbing.
Outbuildings (sometimes)
Sheds, garages and fences may be included, often with limits.
Rebuild-related costs
Some policies include professional fees or debris removal (check limits).
2) What contents insurance typically covers
Think “things you’d take with you if you moved”.
Furniture & appliances
Sofas, beds, tables and often white goods (check definitions).
Personal belongings
Clothes, books, toys and everyday household items.
Tech & gadgets
Laptops, phones, tablets and games consoles (often with limits).
Valuables
Jewellery and watches are often limited unless specified.
High-value items guide →3) Which policy do you need?
A simple guide based on your situation.
If you own your home
You’ll usually want buildings cover. Contents cover depends on whether you want protection for belongings.
If you rent
You typically need contents insurance (your belongings). Buildings is usually the landlord’s responsibility.
If you have a mortgage
Lenders often require buildings insurance. Some people choose combined cover for simplicity.
If you live in a leasehold flat
Buildings may be arranged by the freeholder/management company. You usually need contents insurance. Always check what’s included.
4) Sums insured: rebuild value vs contents value
This is where many people accidentally underinsure.
Two different numbers
Buildings insurance often uses a rebuild value, not market value. Contents insurance uses the replacement value of your belongings.
- Buildings: don’t use house sale price as rebuild value
- Contents: estimate what it would cost to replace everything
- Check single-item limits for valuables and tech
- Update cover when you renovate or buy expensive items
5) Accidental damage: what it is (and why it matters)
Often optional — and often misunderstood.
Buildings accidental damage
Typically covers unexpected damage to fixed parts of the home (terms vary).
Accidental damage guide →Contents accidental damage
Typically covers accidental damage to belongings, often with exclusions and limits.
Read more →Excess still applies
Even with accidental damage cover, you may pay an excess.
Excess explained →Claims and settlement
Policies may settle via repair, replacement, or cash depending on terms.
Claims explained →6) How to compare policies sensibly
Avoid “cheap but weak” cover by checking these items.
Compare like-for-like
Match the cover type (buildings / contents / combined), similar sums insured, and similar add-ons. Then compare excess, limits, and exclusions.
- Cover type: buildings / contents / combined
- Sum insured and section limits
- Single-item limits & specified valuables
- Accidental damage included or optional
- Excess amounts (total)
- Settlement method (repair/replace/cash) — see indemnity
Next reading
Continue with the most useful follow-on guides.
Underinsurance explained
How claims can be affected if sums insured are too low.
Read →Accidental damage
What it covers and common exclusions.
Read →High-value items
How to insure valuables, jewellery and tech properly.
Read →Glossary
Quick definitions of common insurance terms.
Open glossary →Affiliate disclosure
Some links on this site are affiliate links. If you choose a provider through a link, we may earn a commission at no extra cost to you. Always check the provider’s website for the latest terms and product details.