What Does Home Insurance Cover?
UK home insurance covers two things: the permanent structure of your property (buildings insurance) and your personal belongings (contents insurance), bought separately or combined. Standard cover includes fire, theft, storm, flood, subsidence, and escape of water, with gradual damage, wear and tear, and business use excluded.
Most homeowners discover gaps in their home insurance only when they need to claim. Knowing exactly what’s included, what isn’t, and what sits behind optional add-ons helps you pick the right policy and avoid unpleasant surprises.
This guide breaks down buildings cover, contents cover, common exclusions, how much cover you need, and which optional extras are worth the extra premium.
Buildings insurance covers the structure, contents insurance covers your belongings. Turn the house upside down: anything that stays put is buildings, anything that falls out is contents.
Compare combined buildings and contents policy quotes to see what full cover costs for your home.
- What is the difference between buildings and contents insurance?
- What does buildings insurance cover?
- What does contents insurance cover?
- What is not covered by home insurance?
- Do you need both buildings and contents insurance?
- How much cover do you need?
- What optional extras are available?
- Frequently asked questions (FAQs)
What is the difference between buildings and contents insurance?
Buildings insurance covers the permanent structure and fixed fittings, while contents insurance covers your moveable belongings. The simplest test: if you turned your house upside down, anything that stays put is buildings, anything that falls out is contents.
What buildings insurance covers
The buildings element rebuilds or repairs the fabric of the property: walls, roof, floors, fitted kitchens, fitted bathrooms, built-in wardrobes, permanent flooring, plumbing, wiring, and outbuildings you own.
What contents insurance covers
The contents element replaces your furniture, electronics, clothing, kitchenware, appliances, and other personal belongings inside the home.
Who needs what
| Situation | Buildings | Contents |
| Homeowner with a mortgage | Required by lender | Optional but recommended |
| Homeowner without a mortgage | Optional but recommended | Optional but recommended |
| Leaseholder (flat) | Usually covered by freeholder | Your responsibility |
| Private tenant | Landlord’s responsibility | Your responsibility |
| Landlord letting a property | Landlord insurance | Landlord contents (optional) |
What does buildings insurance cover?
Buildings insurance covers the cost of repairing or rebuilding the permanent structure of your home after damage from an insured event: fire, storm, flood, subsidence, theft, vandalism, escape of water, and impact.
What counts as ‘the building’
The building includes walls, roof, foundations, floors, ceilings, doors, windows, fitted kitchens, built-in bathroom suites, permanent flooring (tiles, fitted carpets, wooden floors), plumbing, drainage, electrical wiring, and central heating.
Most policies also cover outbuildings like garages and sheds, boundary walls, fences, driveways, paths, and permanently installed garden structures. Always check the schedule to confirm which external structures are included.
Events typically covered
| Insured event | What it covers |
| Fire | Damage from fire, smoke, and explosion |
| Storm and weather | Wind, rain, hail, snow, and lightning damage |
| Flood | Rising water damage (higher excesses apply in flood-prone areas) |
| Subsidence | Ground movement beneath the property (compulsory excess often £1,000) |
| Theft and vandalism | Damage from break-ins or deliberate damage |
| Escape of water | Damage from burst or leaking pipes, tanks, or heating |
| Impact | Damage from a vehicle, falling tree, or aircraft |
Alternative accommodation
Most buildings policies cover the cost of alternative accommodation if your home becomes uninhabitable while repairs are carried out after an insured event. Check the cap, which is usually a percentage of the rebuild sum insured.
What does contents insurance cover?
Contents insurance covers the cost of repairing or replacing your personal belongings if they’re damaged, destroyed, or stolen by an insured event. That includes furniture, electronics, clothing, kitchenware, and items in sheds and garages.
What’s covered as standard
Standard contents cover protects against theft, fire, flood, storm, and escape of water. Accidental damage, like spilling wine on the sofa or drilling through a pipe, is an optional add-on.
If you rent, you don’t need buildings cover but you should still take a contents policy. Dedicated renters insurance handles the belongings-only case without the full home policy.
See our product page on renters insurance for tenant-specific cover.
Single-item limits
Most contents policies cap the payout for any single item at £1,500 to £2,500. Anything above the limit, like jewellery, watches, musical instruments, or artwork, must be specified individually on the policy.
| Item type | Typical single-item limit | What to do |
| Jewellery or watches | £1,500-£2,500 | Specify individually above the limit |
| Bicycles | £1,000-£1,500 | Add personal possessions if used away |
| Electronics (TV, laptop) | £2,000 | Usually within limit, check high-end kit |
| Musical instruments | £1,500 | Specify individually above the limit |
| Artwork / antiques | £1,500-£2,500 | Specify and provide valuations |
| Money (cash in home) | £500 | Separate sub-limit, not single-item |
Cover away from home
Standard contents insurance only covers belongings inside the property. If you want to protect a phone, laptop, or bike that you carry with you, you need personal possessions cover as an add-on.
Personal possessions typically covers items worldwide, subject to single-item limits and the sum insured on the add-on. It’s the right fit for commuters, students, and anyone who travels often.
What is not covered by home insurance?
Home insurance has standard exclusions that apply across virtually all policies: wear and tear, poor maintenance, gradual damage, unoccupied periods, deliberate damage, pre-existing damage, and business equipment or stock.
Standard exclusions
| Exclusion | What it means | How to address it |
| Wear and tear | Gradual deterioration from normal use | Not insurable, budget for it |
| Poor maintenance | Damage from neglected upkeep | Keep service and repair records |
| Gradual damage | Slow water ingress, rising damp, condensation | Address early, not an insured event |
| Unoccupied property | Usually excluded after 30-60 days empty | Unoccupied property cover |
| Business equipment and stock | Items used for work or trade | Business contents or commercial cover |
| Deliberate damage | Damage caused intentionally by you or your household | Excluded in all circumstances |
| Pre-existing damage | Damage present before the policy started | Disclose and fix before inception |
Unoccupied properties
If a home sits empty for more than 30 or 60 days, standard cover usually lapses. Unoccupied property insurance is the right fit for probate, extended renovations, or second homes used seasonally.
Business use
Standard home insurance excludes business equipment, stock, and liability. If you let the property, you’ll need landlord insurance instead of home cover.
Your duty to answer honestly
Under the Consumer Insurance (Disclosure and Representations) Act 2012, you must answer an insurer’s questions honestly and take reasonable care not to misrepresent your circumstances.
Careless or deliberate misrepresentation gives the insurer grounds to reduce, refuse, or void a claim, so always disclose previous claims, convictions, and material changes like business use or a tenant moving in.
Do you need both buildings and contents insurance?
It depends on your situation: homeowners with a mortgage must have buildings insurance. Contents cover is optional but strongly recommended for anyone with belongings worth more than a few hundred pounds.
Mortgaged homeowners
Every UK mortgage lender requires buildings cover as a condition of the loan. Without it, the lender’s security for the debt is at risk if the property is damaged or destroyed.
Tenants and leaseholders
If you rent, the landlord insures the structure. You only need a contents policy, or dedicated renters cover, to protect your own belongings.
Leaseholders in flats usually have buildings cover arranged by the freeholder or management company as part of the service charge. You pay for contents insurance yourself.
Combined policies
For owner-occupiers who need both, a combined buildings and contents policy is usually cheaper than buying the two separately. You get one excess, one renewal date, and the same claims process for both.
How much cover do you need?
For buildings you need enough to cover the full rebuild cost (not the market value), and for contents you need enough to replace everything you own at today’s prices. Getting both figures right prevents under-insurance at claim time.
Buildings: rebuild cost, not market value
Rebuild cost is what it would cost to demolish and reconstruct the home from scratch, including materials, labour, and professional fees. The ABI rebuilding cost calculator gives a reliable estimate for standard properties.
Rebuild cost is usually lower than market value because it excludes the land value. For listed buildings or non-standard construction, commission a professional survey because standard calculators understate the cost.
Contents: replacement value
Go room by room and list everything you own, estimating what each item would cost to buy new today. Include furniture, electronics, clothing, kitchenware, tools, and items in sheds or garages.
Keep the inventory with photos or receipts, ideally stored in the cloud. Update it after every major purchase and at every renewal.
The average clause and underinsurance
If the sum insured is lower than the actual rebuild cost or contents value, your insurer can apply the average clause and reduce your payout proportionally. Under-insuring to save a few pounds on the premium can cost thousands at claim time.
Example: you insure £100,000 of contents when the true value is £200,000, meaning you’re 50% under-insured. On a £10,000 theft claim the insurer can pay just £5,000, and the shortfall comes out of your pocket.
What optional extras are available?
Most insurers offer add-ons that extend standard cover: accidental damage, personal possessions, home emergency, legal expenses, and specified items. Only add extras that match your actual risks.
Add-on cover at a glance
| Add-on | What it covers | Who it suits |
| Accidental damage | Unintentional one-off damage (spills, drops, DIY mishaps) | Families with young children, renovators |
| Personal possessions | Belongings carried outside the home (phone, laptop, bike, jewellery) | Commuters, travellers, students |
| Home emergency | Boiler breakdown, burst pipe, electrical failure callouts | Homes with older heating or plumbing |
| Legal expenses | Legal costs for property disputes and personal injury claims | Leaseholders, neighbours in dispute |
| Specified items | Single items above the policy’s single-item limit | Anyone with jewellery, art, or instruments |
Which extras are worth it?
Accidental damage and personal possessions are the two most commonly claimed add-ons. Home emergency overlaps with standalone boiler cover, so compare the two before buying.
Flood-prone homes should check their excess and consider the Flood Re scheme, which caps the flood element of the premium by council tax band.
Check your flood risk on gov.uk before deciding.
Frequently asked questions (FAQs)
Buildings insurance covers the cost of repairing the pipe and any resulting damage to the structure (walls, floors, ceilings). Contents insurance covers belongings damaged by escaping water, such as furniture or electronics.
Most standard policies cover flood damage, but homes in high-risk flood areas face higher excesses, exclusions, or difficulty finding cover. The government-backed Flood Re scheme caps the flood element of the premium by council tax band.
Permanent garden structures like walls, fences, and sheds are usually covered by buildings insurance. Portable items like garden furniture, tools, and equipment may be covered by contents insurance, often with lower sub-limits.
New-for-old pays the full cost of replacing a damaged item with an equivalent new one. Indemnity cover pays the current market value after deducting wear and tear, so new-for-old gives better protection and is the standard on most contents policies.
Standard home insurance usually excludes business equipment, stock, and liability related to working from home. Office-based clerical work is often included, but trade stock or equipment needs a business use extension or dedicated business contents cover.
Only if you add personal possessions cover. Standard contents insurance stops at the front door, so phones, laptops, jewellery, or bikes stolen while out need the add-on to be covered.
Yes, standard buildings insurance covers subsidence, but a higher compulsory excess usually applies (often £1,000). If you’ve had subsidence before, insurers may apply further loadings or require a structural survey.
No, accidental damage is an optional add-on, not standard cover. It typically adds 10-20% to the premium and covers unintentional one-off damage like spilling paint on the carpet or drilling through a pipe.
The average clause lets an insurer reduce a payout proportionally if your sum insured is lower than the true rebuild or replacement value. Under-insuring by 50% means a 50% cut to every claim settlement.
Most policies cover the clean-up and repair cost from an oil tank leak, subject to a specific sub-limit. If you heat the home with oil, check the policy schedule for environmental damage cover, which can be a separate add-on.