No, building insurance isn’t the same as home insurance. Building insurance is just one part of what we call “home insurance.” Home insurance is the umbrella term that includes buildings insurance, contents insurance, or both combined.
Let’s sort out exactly what each covers and who needs what.
The three types of cover explained
Building insurance
Buildings insurance protects the structure of your home including the walls, roof, permanent fixtures like fitted kitchens, garages, and boundary walls. It covers damage from fire, flood, storm, subsidence, vandalism, and burst pipes, plus rebuilding costs. Mortgage lenders often require this cover as a loan condition.
Contents insurance
Contents insurance covers your personal belongings including furniture, electronics, clothing, and appliances. It protects against theft, accidental damage, fire, and includes cover for belongings away from home.
Home insurance
Home insurance is the umbrella term that can mean buildings only, contents only, or combined cover. Most people use “home insurance” to mean a combined policy.
Key differences at a glance
| Buildings Insurance | Contents Insurance | Combined Home Insurance | |
|---|---|---|---|
| What it covers | Structure and permanent fixtures | Personal belongings and moveable items | Both structure and contents |
| Cover limits | Rebuild value (AKA, the actual cost of rebuilding your home) | Replacement value | Both |
| Excess | Building excess of £100, £150, £250, £400 or £500 Escape of water excess of £400, £600, or £800 | Contents excess of £100, £150, £250, £400 or £500 | Building excess of £100, £150, £250, £400 or £500 Escape of water excess of £400, £600, or £800 Contents excess of £100, £150, £250, £400 or £500 |
| Who needs it | Property owners and landlords | Tenants and homeowners | Homeowners who want comprehensive cover |
| Required by | Mortgage lenders | Not legally required | Recommended for homeowners |
| What’s covered? | Roof repairs, wall damage, fitted kitchens | TV, furniture, clothing, laptops | Roof repairs, wall damage, fitted kitchens, TV, furniture, clothing, laptops |
Who needs what insurance?
Your insurance needs depend entirely on whether you own, rent, or let out your property. Here’s what each situation requires:
Homeowners
- Buildings insurance: Required by mortgage lenders
- Contents insurance: Optional but recommended
- Combined policy: Often cheaper and more convenient
Tenants
- Contents insurance: Protect your belongings and get liability cover
- Buildings insurance: The landlord’s responsibility
Landlords
- Buildings insurance: Essential for protecting your investment
- Landlord insurance: Specialist cover including loss of rent
- Tenant contents: Not your responsibility
What is and isn’t covered?
All home insurance policies protect against “named perils”, AKA specific events listed in your policy that can damage your property or belongings. If these covered events cause damage, your insurer steps in to help with costs.
Named perils cover by insurance type
| Named Peril | Covered by buildings insurance? | Covered by contents insurance? |
|---|---|---|
| Fire and explosion | Yes | Yes |
| Theft | Yes (forced entry damage) | Yes (stolen items) |
| Storm damage | Yes | Yes |
| Flood | Yes | Yes |
| Vandalism | Yes | Yes |
| Burst pipes | Yes | Yes |
| Fallen trees | Yes | Yes |
| Impact by vehicles | Yes | Yes |
| Subsidence | Yes | No |
| Escape of water | Yes | Yes |
| Accidental damage | Yes (optional) | Yes (optional) |
| Alternative accommodation | Yes | No |
What’s NOT covered by either:
Neither contents nor buildings cover will sort you out for wear and tear, that’s just normal deterioration over time. You’re also on your own if damage comes from poor maintenance or neglecting your property. Gradual damage like slow leaks or rising damp that develops over time won’t be covered either. If you’ve left items outside, think unsecured garden furniture or unlocked bikes, they’re not protected.
High-value items above standard limits (typically £2,000 per item) need separate cover, and frost damage only counts if your pipes actually burst. Finally, any pre-existing problems that were already there before your policy started are a no-go.
Key point: If something happens suddenly and unexpectedly from a covered cause, you’re likely protected. If it’s been building up over time or due to lack of care, you probably aren’t.
How much does home insurance cost?
Home insurance costs vary widely based on several factors including your location, property type, level of cover, and individual risk factors (like whether or not you live in a flood zone). With Lemonade, contents insurance policies start from just £4 per month, whilst combined buildings and contents policies start from £14 per month.
You can save money by choosing combined policies, increasing your voluntary excess (higher excess means lower monthly premiums), and paying annually to avoid monthly fees.
Cover in action: Which policy pays?
You’re a homeowner when a burst pipe floods your home:
- Buildings insurance: Covers wall repairs, structural damage, alternative accommodation
- Contents insurance: Covers damaged furniture, electronics, carpets
You’re a tenant when burglars break into your flat:
- Buildings insurance: Your landlord’s building insurance is responsible for the repairs
- Contents insurance: Your responsibility. Covers stolen items like TVs, jewellery
You’re a homeowner when a kitchen fire breaks out:
- Buildings insurance: Covers structural damage, fitted kitchen units
- Contents insurance: Covers moveable appliances, personal items
Special circumstances
High-Value Items
Standard contents insurance limits individual items to £2,000. Declare the following items separately:
- Expensive jewellery or watches
- Professional equipment
- Art or collectibles
- High-end electronics
Non-Standard Properties
These need specialist buildings insurance:
- Listed buildings
- Thatched roofs
- Timber-framed houses
- Properties in flood-risk areas
Leasehold Flats
- Buildings insurance: Often arranged by freeholder/management company
- Your responsibility: Contents insurance and any improvements you’ve made
The bottom line
Building insurance and home insurance aren’t the same thing. Building insurance covers your property’s structure, whilst home insurance is the umbrella term for buildings, contents, or combined cover. For most homeowners, combined buildings and contents insurance offers the best value and protection, it’s typically cheaper than separate policies and ensures both your property and possessions are covered.
Don’t delay getting proper cover. Inadequate insurance could cost you tens of thousands if disaster strikes, whilst the right policy protects you from financial catastrophe at an affordable price.
Ready to protect your home? Get your personalised quote in minutes and compare cover options that fit your needs and budget.
Home insurance frequently asked questions
Is it cheaper to combine buildings and contents insurance?
Yes, combined policies are typically cheaper than buying separately, plus it’s more convenient to deal with one insurer and renewal date.
What's the difference between market value and rebuild value?
Market value is what you’d sell your house for. It includes location, local amenities, and market conditions. Rebuild value is purely the cost of reconstructing your home from scratch with similar materials and specifications. The level of cover for your buildings insurance policy is based on your home’s rebuild value.
Do I need accidental damage cover?
It depends on your lifestyle and risk tolerance. If you have children, pets, or entertain frequently, accidental damage cover could save you tons. It costs a few extra pounds per month, but covers scenarios like wine spills on carpets or footballs through windows.
Does home insurance cover flooding?
Yes, most standard policies cover flooding from rivers, seas, and sewers. Groundwater flooding may need specialist cover. Flood-prone areas face higher premiums.
What happens if I only have buildings insurance and my contents are stolen?
You’d have to pay for replacing all your personal belongings out of your own pocket. Contents insurance policy premiums are relatively low compared to the potential cost of replacing everything you own.
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