| Buildings cover | Structure, fixtures and fittings |
|---|---|
| Contents cover | Belongings, furniture and valuables |
| Required by lender? | Buildings cover, yes; contents is optional |
| Sum insured basis | Rebuild cost, not market value |
| Policy term | Usually 12 months, renewed annually |
| Options | Accidental damage, high-value items, landlord cover |
Who is this for?
- Buyers who need buildings cover in place before completion
- Homeowners reviewing cover at renewal or remortgage
- Landlords needing specialist landlord insurance
- Owners of high-value homes, art or jewellery
- Leaseholders checking what the freeholder's policy covers
What is the difference between buildings and contents insurance?
Buildings insurance covers the physical structure: walls, roof, floors, and permanent fixtures such as kitchens and bathrooms. Contents insurance covers things you would take with you if you moved, such as furniture, electronics, clothes and jewellery.
You can buy them separately or as a combined home insurance policy. Cover depends on underwriting and policy terms, including excesses and exclusions.
Combined policies can be simpler and avoid disputes about whether damage counts as buildings or contents. Contents cover can also be extended to items you take outside the home, often called personal possessions cover.
Do I need buildings insurance for a mortgage?
Yes. Mortgage lenders require buildings insurance to be in place from completion, because the property is their security. When buying, you are often responsible for the property from exchange of contracts, so many buyers arrange cover from that point.
If you own a leasehold flat, the freeholder usually insures the building. Your solicitor will check the policy is adequate, but you will still need your own contents cover.
Lenders usually expect cover against standard risks such as fire, flood, subsidence, storm and escape of water. If your home is in a flood risk area, the Flood Re scheme may help insurers offer cover for eligible homes.
If you are remortgaging, your new lender will also need to see adequate buildings cover in place from completion.
How much buildings cover do I need?
Buildings cover should reflect the cost of rebuilding your home, not its market value. The rebuild cost includes demolition, materials, labour and professional fees. In prime London, it can be very different from the purchase price.
Your mortgage valuation may include a reinstatement figure. For larger, listed or period homes, a specialist rebuild valuation is often worthwhile. Underinsurance can reduce a claim payout.
The Building Cost Information Service (BCIS) publishes a widely used rebuild cost calculator for standard homes.
Rebuild costs rise over time, so check the sum insured at each renewal and after any extension or major improvement.
Insurance for high-value homes and possessions
Standard home insurance often has limits on single items and total contents. Owners of high-value homes, art, watches or jewellery may need a specialist high-net-worth policy.
These policies typically offer higher limits, cover worldwide and more flexible claims settlement. Valuables may need professional valuations and, sometimes, security measures such as approved alarms or safes.
If you borrow through a private bank, the lender may have specific insurance requirements, and we can review cover alongside the mortgage.
What about landlord insurance?
If you let a property, a standard home policy is usually not suitable. Landlord insurance covers the building and can include landlord's contents, liability and loss of rent.
Buy-to-let lenders require buildings cover. HMO and holiday let properties often need specialist policies. Tell the insurer exactly how the property is used.
Insurers may also ask about landlord safety checks, such as gas safety certificates.
What does home insurance not cover?
Most home policies exclude gradual damage, such as wear and tear, damp, rot and lack of maintenance. Other common exclusions include damage from pests and loss while the home is unoccupied beyond a set period.
An excess applies to most claims, and some, such as subsidence or escape of water, can be much higher. Always read the policy wording and the insurance product information document.
Do I need special cover for an empty or renovation property?
Usually, yes. Standard home insurance often restricts cover if a property is unoccupied beyond a set period, commonly 30 to 60 days, or during major works. Tell your insurer before leaving a property empty or starting building work.
Unoccupied or renovation insurance is available for properties being refurbished, including those bought with a bridging loan. Lenders will usually require suitable cover as a condition of the loan.
How we arrange it
- Free 15-minute call
- We confirm what your lender and lease require
- We review rebuild cost and contents value
- We compare policies and cover levels
- Cover starts from exchange or completion
Frequently asked questions
When does buildings insurance need to start when buying a house?
Lenders require it from completion at the latest. Many buyers start cover from exchange of contracts, because that is often when responsibility for the property passes to them. Check your contract with your solicitor. Arrange quotes before exchange so you are not left without cover.
Do I need buildings insurance for a leasehold flat?
Usually not personally, because the freeholder or management company normally insures the building and recharges the cost through service charges. Your solicitor should check the cover meets your lender's requirements. You will still need your own contents insurance. Ask the managing agent for a copy of the policy schedule.
Is contents insurance compulsory?
No. Contents insurance is not required by mortgage lenders. It is still worth considering, as replacing everything after a fire, flood or theft can be very expensive. Leaseholders and tenants usually need their own contents policy, as the freeholder's or landlord's cover does not protect your belongings.
What is the difference between rebuild cost and market value?
Rebuild cost is what it would take to rebuild your home from scratch. Market value includes the land and location, so in London it is often much higher. Buildings insurance should be based on rebuild cost. Your mortgage valuation report may include a rebuild figure.
Does home insurance cover accidental damage?
Not always. Accidental damage is often an optional extra, covering things like spilled paint on carpets or a broken television. Check the policy wording to see what is included. Some policies include limited accidental damage cover as standard, such as for glass, with full cover as an upgrade. Check the excess too.
Do I need special insurance for a buy-to-let?
Yes, you usually need landlord insurance rather than standard home insurance. It covers the building and can include liability, landlord's contents and loss of rent. Your buy-to-let lender will require buildings cover. Tell the insurer about the type of tenancy, as some policies exclude certain lets.
Will my insurance cover a listed or non-standard property?
Listed buildings, thatched roofs and non-standard construction often need specialist insurers, because rebuilding can cost more and require specific materials. Tell the insurer about these features, or a claim may be affected. Rebuild values for listed homes often need a specialist surveyor.
Can I change my home insurance when I remortgage?
Yes. Your lender just needs adequate buildings cover in place. A remortgage is a good time to review whether your rebuild cost, contents value and cover levels are still right. Make sure the new lender is noted on the policy if required, and avoid any gap in cover.
Important: Protection policies are subject to underwriting, exclusions and the policy terms. Cover is not guaranteed and will stop if you stop paying premiums. Policies have no cash-in value.