Buildings and Contents Insurance in 2027
How buildings and contents cover works, how to set the right sum insured, and what mortgage lenders, landlords and leaseholders need to know.
- Buildings versus contents insurance: what each covers
- Why mortgage lenders require buildings insurance
- Rebuild cost, market value and underinsurance
- Optional extras, excess and high-value items
- Flood, subsidence and other risks
- Landlord, leasehold and non-standard construction
- Disclosure, claims and costs
- Common claims and how insurers settle them
- Reviewing cover at renewal, remortgage and life changes
- Tips and tricks, common mistakes and a checklist
- How OMB can support you
The short version
Buildings insurance covers the structure of your home and contents insurance covers your belongings. Mortgage lenders require buildings cover from completion, and buyers are often responsible from exchange. This guide explains how to set the right sum insured and what to check in a policy.
- Buildings cover should be based on rebuild cost, not market value.
- Underinsurance can reduce a claim through the average clause, so review the sum insured every year.
- Accidental damage, high-value items and legal expenses are often optional extras that need checking.
- Flood Re can help eligible homes in flood risk areas, but it has limits on which properties qualify.
- Landlords, leaseholders and owners of non-standard homes have specific points to check.
Insure for rebuild cost, not value
Use a rebuild calculator or valuation, and review the figure every year.
What the full guide covers
- Buildings versus contents insurance: what each covers
- Why mortgage lenders require buildings insurance
- Rebuild cost, market value and underinsurance
- Optional extras, excess and high-value items
- Flood, subsidence and other risks
- Landlord, leasehold and non-standard construction
- Disclosure, claims and costs
- Common claims and how insurers settle them
- Reviewing cover at renewal, remortgage and life changes
- Tips and tricks (8), common mistakes (6) and a 10 point checklist
- How OMB can support you, with a fictional worked example
A Mayfair buyer checks the sum insured
Illustrative example only. Daniel is buying a period maisonette and assumes his buildings cover should match the purchase price. We explained that the sum insured should reflect rebuild cost, that a listed or period property may need a specialist valuation, and that the freeholder's policy might also apply. We also pointed out that contents cover for his art and watches needs single item limits to be checked. He arranged cover from exchange so the property was protected before completion. This is not a real client, and cover is subject to underwriting and policy terms.
Names, figures and circumstances are fictional and illustrative only. They do not represent an actual client of Our Mortgage Broker Limited.
Buildings and Contents Insurance in 2027
How buildings and contents cover works, how to set the right sum insured, and what mortgage lenders, landlords and leaseholders need to know.
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We help homeowners, landlords and owners of high-value London property find suitable cover alongside their mortgage. We charge no fee for protection advice, and we receive commission from the insurer, confirmed before you proceed.
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Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Our Mortgage Broker Limited is authorised and regulated by the Financial Conduct Authority (FRN 944663). Registered in England and Wales, company no. 11358646. Registered office: 23 Berkeley Square, Mayfair, London W1J 6HE. There may be a fee for mortgage advice: we may charge up to 1% of the loan amount, and our typical fee is £500. Your fee agreement sets out the exact fee and when it is payable (at decision in principle, application or mortgage offer); fees are not refundable once due. We usually also receive commission from the lender. Protection and insurance products are subject to underwriting and the policy terms and conditions. This guide is general information only and is not personal advice. Case studies are fictional, illustrative examples and do not represent real clients. Rates, tax and regulatory information are correct as at October 2026 and may change, including at the Autumn Budget on 28 October 2026.