Home insurance in the UK

If you are buying with a mortgage, your lender will usually require buildings insurance. Contents insurance covers a different need: protecting your belongings. This guide explains the options, costs and points to check before choosing a policy.

Two main types of home insurance

There are two main types of cover: buildings insurance and contents insurance. You can also buy them together under a combined home insurance policy.

• Buildings insurance – protects the structure of your property, but does not protect the items you keep in it. Such a policy will allow you to receive money to repair your roof, windows or floor if a specific accident occurs.
• Contents insurance – as the name suggests, such a policy protects the items you keep in your home. This could be a television, carpet, jewellery or even books.
• Combined home insurance – is a product that combines the features of building and contents insurance. Compare the total price and terms with separate policies; combined cover is not necessarily more expensive.

You can find out more about this on the Moneyhelper website.

Buildings insurance

Building insurance covers the cost of repairing structural damage to the building (roof, walls, ceilings, floors, windows, sometimes built-in kitchens and bathrooms).

The types of damage that are covered in a typical buildings insurance policy are: floods, storms, fires and explosions, vandalism, fallen trees and lampposts, and subsidence. For an insured event, buildings insurance can help pay for repairs or rebuilding, subject to the policy’s limits, exclusions, excess and conditions. Routine maintenance and wear and tear are normally excluded. The effect of negligence depends on the policy conditions and circumstances of the claim.

Base your buildings cover on the cost of rebuilding the property, not its purchase price or market value. Use a suitable rebuild-cost calculator or a professional assessment. If a policy offers a fixed cover limit, check that it is sufficient for your property.

Such a policy is the absolute minimum that the bank requires. It is an option for those who do not wish to take out insurance but need to meet the bank’s requirements.

Contents insurance

Contents insurance covers the cost of replacing furniture, clothing, carpets and curtains, jewellery, electronic equipment (televisions, computers, tablets, telephones), banknotes, coins and other personal effects in the event of damage or theft. This includes damage, e.g. in the event of fire or water damage. Accidental damage cover may be included or available as an optional extra, depending on the policy. It does not normally cover mechanical or electrical breakdown or wear and tear.

Estimating the value of all your home possessions when buying a policy is also quite problematic, but it is important not to underestimate the value of your belongings. Check the total contents limit and any separate limits for valuables or individual items before buying.

An excess is the part of an insured claim that you pay yourself; it may be deducted from the settlement. A compulsory excess is set by the insurer, while a voluntary excess is an additional amount you choose. Check the total payable for each type of claim. A higher voluntary excess may reduce the premium, but choose an amount you could afford if you needed to claim.

Contents-only insurance may suit a tenant or someone whose building is already covered by a shared policy. For a leasehold flat, check who arranges buildings insurance and whether its cost is included in the service charge. Before buying a separate policy, ask your solicitor or managing agent to confirm the existing cover.

Buildings and contents insurance

A combined policy covers both the building and your belongings, subject to its limits and exclusions. This product combines the features of the insurances we mentioned above.

How much does home cover cost?

The cost of home insurance depends on quite a few factors like:

• the location of the property
• the number of people living in the house
• the cost of rebuilding
• the value of the contents
• the type of cover
• the excess amount
• security features
• previous claims

Optional extras, such as accidental damage cover for your property, can increase the premium. According to ABI data for April–June 2026, the average annual combined buildings and contents premium was £383. This is a market average, not an individual quote — your premium may be lower or higher.

Do I need home insurance?

Insurance requirements depend on your mortgage, ownership arrangements and location. In Scotland, owners of tenement flats have a statutory duty to maintain buildings insurance against prescribed risks, subject to specified exceptions. Ask your solicitor what applies to your property. Contents insurance is generally optional.

Mortgage lenders usually require buildings insurance. You can choose another provider, but the cover must meet your lender’s requirements. A buildings-only or combined policy may be suitable; confirm the required scope and start date with your conveyancer.

For a rental property, check the mortgage conditions and any legal or ownership requirements. Buildings insurance is normally the landlord’s responsibility, and the policy must permit letting. Tenants generally choose whether to insure their own belongings; these are not normally covered by the landlord’s policy.

Where can I buy home insurance?

There are at least two methods of purchasing home insurance:

• Direct purchase, such as online
• Purchase from a broker, such as Extend Finance

You can arrange cover directly with an insurer or ask a broker to help compare options. Extend Finance can explain the scope, exclusions, excesses and premiums of available policies so you can assess them against your needs and budget. All insurance consultations and advice from Extend Finance are free and without obligation. We receive commission from the insurer when a policy is arranged; you pay the policy premium, with no insurance advice fee payable to us.

Make an appointment today for a free, no-obligation consultation to find out all about the policy you are interested in. Don’t wait, take care of your finances!