Home Insurance: A Comprehensive Guide to Buildings and Contents

Home insurance comes in two parts: buildings insurance and contents insurance. You need one, the other, or both depending on your situation.

Buildings vs Contents

What’s Covered	Buildings	Contents
Walls, roof, floors	Yes	No
Kitchen and bathroom	Yes	No
Fitted carpets	Yes	Yes
Furniture	No	Yes
Electronics	No	Yes
Clothing	No	Yes
Garden structures	Yes?	No

Buildings Insurance

Covers the structure of your home. Required by mortgage lenders.

What It Covers	What It Doesn’t
Fire, flood, storm damage	General wear and tear
Subsidence	Lack of maintenance
Escape of water	Damage from gradual leaks
Theft (forced entry)	Items left outside
Vandalism	Intentional damage

How Much Cover?

Insure for the rebuild cost, not the market value.

Property Type	Average Rebuild Cost
1-bed flat	£100,000-£200,000
2-bed house	£150,000-£300,000
3-bed house	£200,000-£400,000
4-bed house	£300,000-£600,000

Use the Building Cost Information Service calculator to estimate rebuild cost.

Contents Insurance

Covers your belongings inside the home.

Category	Typical Value
Living room	£5,000-£15,000
Bedrooms	£3,000-£10,000
Kitchen	£3,000-£8,000
Electronics	£2,000-£5,000
Clothing	£2,000-£10,000
Total	£20,000-£60,000

Single Item Limit

Most policies cap individual items at £1,000-£2,000. Valuable items (jewellery, watches, bikes, art) need “specified” cover.

Item Value	Cover Type
Under £1,500	Standard contents
Over £1,500	Named item on policy

Optional Add-Ons

Add-On	What It Does
Accidental damage	Covers spills, drops, breaks
Legal expenses	Covers property disputes
Home emergency	Emergency repairs (plumber, locksmith)
Bike cover	Theft of bicycles
Gadget cover	Phones, tablets, laptops
Personal possessions	Cover away from home

How to Save on Home Insurance

Tip	Saving
Combine buildings + contents	10-20%
Increase voluntary excess	10-15%
Install a burglar alarm	5-10%
Pay annually	10-20%
Shop around at renewal	20-40%
Don’t auto-renew	Most expensive option

What to Do When You Need to Claim

Step	Action
1	Document everything (photos, receipts)
2	Report to police if stolen
3	Contact insurer immediately
4	Keep damaged items (don’t throw away)
5	Get repair quotes
6	Don’t start repairs without approval

Common Exclusions

Exclusion	What to Do
General wear and tear	Not insurable — maintenance is your responsibility
Acts of war	Rare, can’t insure
Nuclear risks	Not insurable
Intentional damage	Insurance fraud
Untrimmed trees	Maintain your garden

Bottom Line

If you have a mortgage, buildings insurance is mandatory. Contents insurance is optional but strongly recommended — most people underestimate the value of their belongings. Combine both policies, insure for the right amounts, and shop around at renewal.