Buildings vs contents insurance: what you actually need

Buildings vs contents insurance is one of the first questions people hit when they buy or rent a home, and it matters because buying the wrong one leaves a gap you only find when you claim. The quick test: if you turned your home upside down and shook it, anything that falls out is contents. Anything that stays put is the building.

What buildings insurance covers

According to MoneySavingExpert’s buildings insurance guide (updated May 2026), buildings cover pays for the structure of your home: the walls, roof and floors, outbuildings such as garages and sheds, and permanent fixtures such as a fitted kitchen or bathroom.

It typically covers damage from events like:

• burst pipes and escape of water
• storms, floods and subsidence
• fire, theft and criminal damage
• collisions, such as a car hitting the house

It doesn’t cover general wear and tear, and accidental damage (drilling through a pipe, say) is usually an optional extra.

What contents insurance covers

Contents cover is for your belongings: furniture, TVs, clothes, laptops, crockery. MoneySavingExpert’s contents insurance guide (updated October 2026) says most policies cover theft (usually only where there are signs of forced entry), fire and smoke, flooding, burst pipes, storm damage and vandalism, and items in outbuildings. Many also include spoiled food if your freezer breaks down, some stolen cash up to a limit, and liability if someone is injured in your home and it’s your fault.

Two things are often missing unless you add them:

• Personal possessions cover (sometimes called “all risks”), for things you take out of the house, like a laptop or a bike. Without it, items outside your home aren’t covered.
• Accidental damage, for spills, drops and smashed glass.

“Before you buy anything, work out who’s responsible for what. If you rent or own a flat, someone else may already insure the walls, and your job is the things inside.”

Who needs which

You own a house

You’ll usually want both. There’s no law that says you must have buildings insurance, but MoneySavingExpert notes that many mortgage lenders require it as a condition of the mortgage, so check your offer. Most homeowners buy the two together as a combined home insurance policy. Buying buildings cover on its own is uncommon, but it can suit some people, so compare a combined quote with two separate ones.

You own a leasehold flat

The Leasehold Advisory Service says that usually the lease provides for the landlord to arrange insurance of the building, not the contents. You pay your share through the service charge, which GOV.UK’s guide to buying or owning a leasehold home confirms can include building insurance. So check your lease before you buy buildings cover, or you could pay twice. Your own belongings still need a contents policy.

As a leaseholder, you have a right to get information about service charges or insurance. The Leasehold Advisory Service says you can ask your landlord for a written summary of the building’s policy, showing the amount insured, the insurer and the risks covered, and the landlord must provide it within 21 days.

You rent

Buildings insurance is your landlord’s job. MoneySavingExpert’s guide for tenants (updated May 2026) says tenants don’t need it, with rare exceptions such as some lodger or property guardian arrangements, or a tenancy agreement that says otherwise. There’s no legal requirement to have contents insurance either, but your landlord’s policy won’t pay for your belongings. MoneySavingExpert puts contents-only cover at often £50 to £150 a year, depending on the level of cover, where you live and the extras.

Look for tenant’s liability cover too. It pays for accidental damage you cause to your landlord’s property, such as a stained carpet or a cracked sink. Some councils and housing associations run low-cost contents schemes for their tenants, so ask yours.

In Scotland: owners of tenement flats

Scotland has a specific rule. Under section 18 of the Tenements (Scotland) Act 2004, every owner of a flat in a tenement must keep insurance for the reinstatement value of their flat and its share of the building. It can be a common policy for the whole building. Another owner can ask to see proof of your policy and that you’ve paid the premium, and you have 14 days to show them.

How much to insure for

Buildings: the rebuild cost, not the sale price. The Association of British Insurers (ABI) says rebuild cost is usually lower than your home’s market value, and should include professional fees and the cost of clearing the site. For a standard brick-built home it points to the Building Cost Information Service’s calculator. For listed, non-standard or unusual homes, use a chartered surveyor. If you bought recently, your mortgage valuation may show the figure. Check it at each renewal and after any extension or major work.

Contents: the cost of replacing everything new. Go room by room and add up what it would cost to buy it all again today, including the small things: clothes, towels, pans, books. It adds up faster than people expect.

A worked example: what underinsuring costs

MoneySavingExpert gives this example. You tell your insurer your contents are worth £10,000, but they’re really worth £20,000. After a burglary you claim £5,000. Because you were only insured for half the real value, the insurer may pay only half the claim: £2,500.

The excess comes off too. On a £500 claim for a TV with a £50 compulsory excess, you’d get £450. Add a £50 voluntary excess and it drops to £400.

Watch single-item limits as well. MoneySavingExpert says most policies cap payouts at £1,000 to £2,000 per item, so a good bike, an engagement ring or a gaming PC may need listing separately. Keep receipts or proof of purchase for anything valuable. Our guide on keeping receipts so you can claim covers a simple way to do that.

What to have ready

• Your lease or tenancy agreement, to see who insures the building.
• Your rebuild cost, from the BCIS calculator, a surveyor or your mortgage valuation.
• A contents total, worked out room by room at new prices.
• A list of high-value items over £1,000 each, with receipts or photos.
• Any claims in the last five years, and details of locks and alarms.

Common mistakes

• Insuring a house for its market value. MoneySavingExpert calls this a common mistake. The ABI says rebuild cost is usually lower than market value, so you could be paying for cover you don’t need.
• Buying buildings cover for a leasehold flat when the service charge already pays for it.
• Guessing the contents total. A low guess can cut every claim, not just big ones.
• Assuming your laptop is covered on the train. Not without personal possessions cover.
• Leaving the home empty for weeks. MoneySavingExpert says most insurers allow about 30 days unoccupied before cover may be restricted, so check before a long trip.

What happens if you do nothing

If you own your home and have no buildings cover, a fire, flood or subsidence bill falls on you, and you may be breaking your mortgage terms. If you rent and have no contents cover, your landlord’s policy repairs the building but won’t replace your things. And if you already have a policy that renews automatically, the cover amounts stay as they were years ago unless you update them.

At renewal, FCA rules mean your insurer has to show last year’s premium and encourage you to check your cover and shop around. Use that notice as the moment to check your rebuild cost and contents total. There’s more on timing in our guide to home insurance renewal.

A simple plan

1. Check who insures the building: you (freehold house), your landlord or freeholder (most leasehold flats, all rentals), or a common policy (many Scottish tenements).
2. Work out your rebuild cost if the building is yours to insure.
3. Add up your contents at new-for-old prices, room by room.
4. List anything worth over £1,000 and check the policy’s single-item limit.
5. Decide on extras: accidental damage, personal possessions, tenant’s liability.
6. Compare combined and separate quotes for the same cover, then buy.
7. Recheck the figures at every renewal, and after any building work.