Home Insurance UK Guide: Buildings, Contents & Tips

What Is Home Insurance?

Home insurance protects you financially if your property or possessions are damaged, destroyed, or stolen. It typically comes in two parts: buildings insurance (covering the structure itself) and contents insurance (covering your belongings inside). You can buy them separately or as a combined policy.

Most homeowners need both. If you have a mortgage, your lender will almost certainly require buildings insurance as a condition of the loan. Tenants generally only need contents insurance, since the landlord is responsible for the building.

Buildings Insurance

Buildings insurance covers the permanent structure of your home — walls, roof, floors, ceilings, doors, windows, fitted kitchens, bathrooms, and fixed fixtures like built-in wardrobes. It also typically covers outbuildings, garages, fences, gates, paths, and driveways.

Buildings Insurance: What's Typically Covered

Fire, flood, and storm damage to the structure of your home
Subsidence, heave, and landslip (usually subject to a higher excess)
Escape of water from pipes, tanks, or heating systems
Theft or attempted theft causing damage to the building
Falling trees or aerials that damage the property
Impact damage from vehicles or animals

Rebuild Cost vs Market Value

A common mistake is insuring your home for its market value (what you could sell it for). Buildings insurance should be based on the rebuild cost — how much it would cost to completely rebuild the property from scratch, including demolition, materials, and labour. The rebuild cost is usually significantly lower than the market value because it excludes the land.

You can find the rebuild cost on your most recent mortgage valuation, or use the Building Cost Information Service (BCIS) calculator from the Royal Institution of Chartered Surveyors (RICS). Getting this figure right is important — if you underinsure, your insurer may reduce any claim payout proportionally.

Contents Insurance

Contents insurance covers the things you own inside your home — furniture, electronics, clothing, books, kitchen appliances, curtains, carpets (if not fitted), and personal belongings. It protects against theft, fire, flood, and accidental damage (if included).

New for Old vs Indemnity

Most modern contents policies offer "new for old" cover, meaning they will replace a damaged or stolen item with a brand new equivalent, regardless of the age of the original. Some cheaper policies offer "indemnity" cover, which deducts for wear and tear — meaning you receive less than the cost of a new replacement. New for old is almost always worth the small extra premium.

High-Value Items

Most contents policies have a single-item limit — typically £1,000 to £2,000 — above which individual items must be specifically listed (or "specified") on the policy. This commonly applies to jewellery, watches, art, musical instruments, and bicycles. If you don't declare high-value items, they may not be fully covered.

What's NOT Covered

Standard home insurance policies typically exclude:

Gradual wear and tear — maintenance is your responsibility
Deliberate damage caused by you or your family
Business equipment — you need separate business insurance
Some flood-risk properties — though Flood Re helps most homes access cover
Pre-existing damage or issues you knew about before taking out the policy

Accidental Damage Cover

Accidental damage is an optional add-on to both buildings and contents insurance. It covers sudden, unintentional damage — for example, spilling paint on a carpet, drilling through a pipe, or a child putting a toy through a TV screen.

Without accidental damage cover, your policy only covers specific "insured perils" like fire, theft, and storm damage. Accidental damage cover is particularly worth considering for families with young children, or if you have expensive flooring or furnishings.

How to Reduce Your Premiums

Increase your voluntary excess. Accepting a higher excess (the amount you pay towards a claim) reduces your premium. Just make sure you can afford the excess if you need to claim.
Improve home security. Deadlocks, burglar alarms, and window locks can all reduce your premium. Some insurers offer discounts for smart home security systems.
Pay annually. Monthly payments usually include interest, making the total cost higher than paying in one lump sum.
Compare quotes. Don't auto-renew without checking the market first. Existing customers often pay more than new customers for identical cover.
Combine buildings and contents. Buying both from the same insurer often qualifies for a discount, and simplifies claims.

Making a Claim

If you need to make a claim, act quickly and methodically:

Claims Checklist

1. Prevent further damage — take reasonable steps to limit the damage (e.g. turn off water, cover broken windows)
2. Document everything — take photos and videos of the damage before clearing up
3. Keep receipts — for damaged items and any emergency repair costs
4. Report to police — if theft or vandalism is involved, get a crime reference number
5. Contact your insurer — most insurers have 24/7 claims lines. Report the claim as soon as possible
6. Don't dispose of damaged items — your insurer may want to inspect them

Landlord Insurance

If you rent out a property, standard home insurance will not cover you. Landlord insurance is a specialist product that includes buildings insurance, landlord's contents cover (for furnished properties), liability cover, and protection against loss of rental income. Some policies also cover legal expenses for tenant disputes. See our Buy-to-Let Guide for more on landlord responsibilities.

When to Use an Insurance Broker

For standard properties, comparison websites work well. However, an insurance broker can add real value if you have a non-standard property (listed building, thatched roof, flood-risk area), high-value contents, or a home-based business. Brokers can access specialist insurers that don't appear on comparison sites and can negotiate on your behalf.

If your home has been refused cover or quoted a very high premium, an insurance broker is often the best route to finding affordable protection. For first-time buyers, remember that buildings insurance is required before your mortgage completes — make sure you have it in place for the completion date.