Buildings insurance protects the structure of a home and its permanent fixtures. Contents insurance protects the belongings kept inside it. Many homeowners need both, while tenants usually arrange contents cover and the landlord insures the building.
A useful starting point is the “upside-down test”. Items that would fall out if the home were turned upside down are generally contents. What stays fixed is generally part of the building, although policy definitions decide edge cases.
What buildings insurance covers
Buildings cover can include:
- walls, roof, floors and foundations;
- fitted kitchens and built-in wardrobes;
- bathrooms and fixed plumbing;
- permanent electrical installations;
- garages and some outbuildings; and
- pipes, cables and drains for which you are responsible.
It protects against stated events such as fire, storm, flood, escape of water, theft damage, impact and subsidence, depending on the policy. Accidental damage to the building may be standard, limited or optional.
What contents insurance covers
Contents can include furniture, clothing, televisions, appliances, personal possessions and other movable items. It may also cover tenants’ fixtures, frozen food, cash or garden contents within specific limits.
Basic cover usually applies at the home. Personal possessions cover may be needed for belongings taken elsewhere. High-value items can need individual listing if they exceed the single-item limit.
Who normally arranges each policy?
An owner-occupier normally needs both. A mortgage lender usually requires suitable buildings insurance, although you do not normally have to buy the lender’s own policy.
A leaseholder may have buildings cover arranged through the freeholder or managing agent and pay towards it through service charges. The lease should be checked before buying duplicate cover.
A tenant normally buys contents insurance for their belongings. The landlord insures the structure and their own landlord contents, but that policy does not protect the tenant’s possessions.
How much cover do you need?
Buildings insurance should reflect the cost of rebuilding the property, not its market sale price. Rebuild cost includes demolition, materials, labour and professional fees. Unusual construction and listed status can increase it.
Contents should reflect the policy’s replacement basis for everything in the home. Add items room by room and check total and single-item limits. Underinsurance can reduce a claim under some policies.
When both policies are involved
A burst pipe may damage a ceiling, fitted units, carpets, furniture and electronics. The building and contents sections can both respond, sometimes with separate excesses if they are held with different providers.
Keeping both with one provider can simplify some claims, but cover and price should still be compared.
Common gaps to check
Look at accidental damage, trace and access, alternative accommodation, matching items, personal possessions, bicycles, business equipment, outbuildings and unoccupancy conditions.
One Call can help you compare buildings, contents or combined home insurance through an insurance broker. Describe who owns the property and which fixtures and belongings need protection.
