Insurance can be easier to understand when you know what each policy is designed to do—and what it might not cover. This guide explains key points to consider before speaking to a qualified professional.
Buildings versus contents insurance
Buildings insurance generally protects the structure of a property and specified permanent fixtures against insured events. Contents insurance generally protects belongings. Definitions and limits vary by insurer.
Do mortgage lenders require buildings insurance?
Mortgage lenders commonly require suitable buildings insurance from exchange of contracts or completion, depending on the circumstances. Contents insurance is usually optional, though often worth considering.
Understanding sums insured
Buildings cover should generally reflect the cost of rebuilding rather than the property’s market value. Contents cover should reflect the cost of replacing belongings. Underinsurance may reduce claim payments.
Accidental damage and personal possessions
Accidental damage may be an optional extension. Cover for belongings taken outside the home can also require an add-on, with separate limits and exclusions.
Flood, escape of water and subsidence
These risks may be covered subject to specific terms, exclusions and excesses. Previous claims or local property conditions can affect pricing and availability.
How to compare policies
Look at the policy excess, single-item limits, security requirements, unoccupied-property restrictions, alternative accommodation and claims support—not just the headline premium.
Frequently asked questions
Is buildings insurance the same as contents insurance?
No. They generally cover different types of property and can be bought together or separately.
Does home insurance cover wear and tear?
Ordinary wear and tear is typically excluded.
Should I insure my home for its sale price?
Buildings sums insured are usually based on rebuilding cost, not sale price.
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Start an enquiry →Reviewed for general clarity: October 2026. Product terms and regulations may change. Check current policy documents and obtain appropriate advice before making decisions.