Buildings insurance and contents insurance cover different things, and most homeowners need both. Buildings covers the structure you live in; contents covers what you keep inside it. Mixing the two up is a common, and costly, mistake.
What buildings insurance covers
Buildings insurance pays to repair or rebuild the physical structure: walls, roof, floors, foundations, fitted kitchens and bathrooms, and usually outbuildings and drives. It responds to fires, storms, escape of water, subsidence and similar events listed in the policy. The sum insured should reflect the full rebuild cost, not the market value. Our guide to reading your policy explains where to find that figure.
What contents insurance covers
Contents insurance covers your possessions: furniture, clothes, electronics and valuables, whether they are damaged, stolen or destroyed. Policies set a total sum insured and often a single item limit above which items must be listed separately.
When you need both
If you own and live in a house, you normally want a combined buildings and contents policy. If you are a tenant, the landlord insures the building and you insure your contents. Leasehold flat owners usually insure buildings through the freeholder or management company, but should confirm this and still cover their own contents.
Watch the gaps
Neither section covers everything. Wear and tear, and gradually developing problems, are excluded. Flood and subsidence often carry higher excesses or separate terms. Check the policy wording before you rely on a cover, and read our explainer on exclusions, conditions and warranties.
Choose sums insured that reflect a full rebuild and a realistic value of your belongings. Underinsurance can cut a claim through the average clause, covered separately.