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?
Scenario 1: Homeowner – burst pipe floods the ground floor
Sarah owns a mid-terrace house in Leeds. In January, a frozen pipe behind her kitchen wall burst overnight, flooding the ground floor. By morning, the laminate flooring had warped, the plasterboard was saturated, and her washing machine had shorted out. She called her insurer that morning and a loss adjuster visited within 48 hours.
| What was claimed | What was covered |
|---|---|
| Replastering the wall | Building insurance: £1,200 |
| Repairing the burst pipe | Building insurance typically covers the damage a burst pipe causes, not the cost of repairing the pipe itself. Pipe repair may be covered under a home emergency add-on if included in your policy. Verify against your policy schedule. |
| Structural damage to kitchen floor joists | Building insurance: £2,100 |
| Two weeks in a local rental property | Building insurance: alternative accommodation, arranged and paid as standard |
| Washing machine | Contents insurance: £350 |
| Ruined non-fitted carpet | Contents insurance: £600 |
Without combined cover, Sarah would have faced a bill of well over £4,000 out of pocket for the structural damage and contents alone, with the pipe repair potentially sitting outside her standard policy unless she held home emergency cover. With combined cover in place, she paid only her excess on the insured elements.
Scenario 2: Tenant – burglars break into the flat
Marcus rents a first-floor flat in Bristol. One evening he came home to find the front door had been forced open and his living room cleared out. Laptop, television, and a pair of headphones were all gone. He called the police, got a crime reference number, and then rang his insurer.
| What was claimed | What was covered |
|---|---|
| Forced door frame repair | Landlord’s building insurance: structural damage only |
| Replacement lock | Landlord’s building insurance: included |
| Laptop | Marcus’s contents insurance: £1,100 |
| Television | Marcus’s contents insurance: £600 |
| Headphones | Marcus’s contents insurance: £120 |
His claim was settled within a week. Had Marcus not taken out contents insurance, a common mistake among tenants who assume the landlord’s policy covers everything, he’d have replaced more than £2,000 worth of belongings entirely out of his own pocket. The landlord’s buildings policy covered the door. Nothing else.
Scenario 3: Homeowner – kitchen fire breaks out
Priya owns a semi-detached house in Birmingham. A grease fire started on her hob during dinner and spread to the kitchen units before she could contain it. The ceiling above the hob was scorched, two base units were destroyed, and smoke damage had spread across the room. The kitchen was unusable.
| What was claimed | What was covered |
|---|---|
| Structural damage to ceiling | Building insurance: £900 |
| Fitted kitchen units and worktops | Building insurance: £3,400 (permanent fixtures fall under building, not contents) |
| Ten days’ alternative accommodation | Buildings insurance: arranged and paid as standard |
| Freestanding microwave | Contents insurance: £180 |
| Pots and pans on open shelving | Contents insurance: £220 |
The total claim came to just over £4,700. Without combined cover, a homeowner in this situation would typically find themselves negotiating which costs fall under which type of damage and potentially paying for one category entirely themselves.
Scenario 4: Landlord – tenant causes accidental fire damage
David owns a buy-to-let terrace in Manchester. His tenant accidentally left a candle burning and a small fire spread to the living room, damaging the wall, skirting boards, two internal doors, and the fitted carpet. The tenant vacated temporarily while repairs were arranged.
| What was claimed | What was covered |
|---|---|
| Replastering two walls | Building insurance: £1,400 |
| Replacing two internal doors | Building insurance: £760 |
| Smoke-damaged skirting and architrave | Building insurance: £380 |
| 17 days of lost rental income | Landlord insurance: £1,530. Whether loss of rent is included as standard or available as an add-on depends on your specific policy. Check your policy schedule to confirm. |
Standard buildings insurance alone would have covered the structural damage. Without loss of rent protection in place, David would have absorbed the lost income himself. For anyone letting a property, buildings-only cover is often not enough. Loss of rent and liability cover are worth looking for when comparing landlord policies, whether included as standard or added on, as they vary across insurers.
Scenario 5: Leasehold flat owner – subsidence crack appears
Amara owns a leasehold flat in South London. She noticed a diagonal crack running from the corner of her bedroom window down towards the skirting board and raised it with her managing agent, who confirmed the freeholder held a block buildings insurance policy covering the entire building.
The building’s foundations had shifted slightly, later confirmed as shrinkable clay soil drying out during a long dry summer. The freeholder made a subsidence claim on the block policy, a structural engineer assessed the property, and the insurer approved remediation work.
| What was claimed | What was covered |
|---|---|
| Structural engineer’s survey | Freeholder’s block buildings insurance: included |
| Underpinning of affected corner | Freeholder’s block buildings insurance: included in £18,000 remediation |
| Internal replastering | Freeholder’s block buildings insurance: included in £18,000 remediation |
| Amara’s fitted wardrobes and upgraded flooring | Amara’s own contents insurance: her responsibility |
As a leaseholder, Amara was not responsible for arranging buildings insurance directly. But she did need her own contents insurance to cover personal belongings and any improvements she had made inside the flat. The freeholder’s policy covered the structure. Everything inside was her responsibility.
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.
Does buildings insurance cover outbuildings like garages and sheds?
Most buildings insurance policies in the UK include outbuildings, attached garages, sheds, and permanently fixed garden structures as part of the standard policy. At Lemonade, storm and flood damage to outbuildings is covered, including damage to fixed items like hot tubs. If you have a detached garage or a high-value garden office, it’s worth confirming with your insurer that the rebuild value of those structures is properly reflected in your total sum insured, as sub-limits can vary. Check your policy schedule to be sure.
Does buildings insurance cover damp and mould?
Generally, no. Damp and mould caused by gradual deterioration, poor ventilation, or maintenance neglect are excluded from buildings insurance – these count as preventable problems rather than sudden insured events.
Is buildings insurance a legal requirement in the UK?
Buildings insurance isn’t a legal requirement under UK law, but it’s almost always a contractual requirement set by mortgage lenders, and a condition of most lease agreements for leaseholders. If you own your home outright with no mortgage, you’re not legally obliged to hold buildings cover. But going without it would leave you exposed to potentially catastrophic financial loss if your home were destroyed by fire or flood.
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