A common question many people ask is whether home insurance and building insurance are the same. The answer is no — while these terms are often mentioned together, they serve different purposes.
Building insurance is a specific type of home insurance policy that focuses on the physical structure of a property, while home insurance typically refers to a broader policy that combines both building insurance and contents insurance, offering cover for both the property and the personal belongings inside. Understanding these differences is essential when selecting the right insurance for your needs, so we’ve put together this ultimate guide covering the differences between buildings insurance and home insurance.
Building insurance covers the structure of the property, such as floors, roof, windows, and walls. Many policies also extend their cover to external features like greenhouses, sheds, garages and fences, as well as permanent fixtures, such as, fitted kitchens, bathrooms, and plumbing systems. Essentially, building insurance protects you from the cost of repairing or rebuilding your property if something detrimental happens or, in the worst case scenario, if it is destroyed.
Standard building insurance is a policy designed to protect homeowners from financial loss due to damage to the physical structure of their property. It typically covers the cost of repairing or rebuilding the property if it is damaged, but it does not cover personal belongings or contents inside the property.
When choosing landlord building insurance, it’s crucial to compare policies carefully, as cover can vary widely. Some policies, such as Total Landlord’s Premier policy, include protection against the higher risks associated with renting like theft, accidental damage, and malicious damage. Read our ultimate guide to malicious damage and our ultimate guide to accidental damage for more comprehensive information. Another key factor to consider is whether the policy covers unoccupied properties, especially between tenancies. Many insurers limit or exclude coverage after 30 days, but Total Landlord’s Premier policy provides up to 90 days of full cover, offering extra security during vacancy periods.
Make sure to check your policy so that you understand what events you are protected from. Typically, these circumstances are covered:
Building insurance is not a legal requirement in the UK. If you own a property, it is entirely up to you whether you choose to have building insurance. However, most mortgage lenders require it as part of their lending conditions, and it is recommended as structural damage can be costly. If you rent a property, then it is the landlord’s responsibility to have building insurance.
Home insurance is a broad term that can include both building insurance and home contents insurance. It’s designed to provide financial protection against unforeseeable events occurring to your property and personal belongings.
Building insurance: As already mentioned, this covers the physical structure of the property, including walls, roofs, floors, and permanent fixtures. Typically, it includes protection against fire, storms, floods, and vandalism
Home contents insurance: Covers items inside your home, such as furniture, appliances, electronics, and personal belongings, against theft, damage, or loss. Usually coverage includes risks like burglary, accidental damage, fire, or water damage
Home contents insurance and building insurance can be purchased separately or as a combined policy. Many insurance providers offer several types of policies to meet the needs of their customers, such as landlord insurance, holiday home insurance, and unoccupied building insurance. Tenants are responsible for their own contents insurance, or student contents insurance. Be sure to research different policies to make certain your home insurance meets your coverage needs.
To sum up, home contents insurance covers the personal belongings inside your property, such as furniture, electronics, and clothing. On the other hand, building insurance protects the physical structure of the property, including the walls, roof, floors, and other permanent fixtures. In short, home contents insurance safeguards the 'contents' of the property, while building insurance focuses on the property's structure.
Standard building insurance typically covers the structure of your home against a range of risks, protecting you from the significant costs associated with repairing or rebuilding after damage. This includes coverage for the property’s main structure—such as walls, roof, floors, and fixtures—as well as damage caused by events like fire, floods, storms, earthquakes, vandalism, theft, vehicle collisions, and falling trees.
It is crucial that your policy reflects the true value of your property to make sure you are adequately covered for rebuild costs in the event of a disaster and. If your property is not insured to its full, current rebuild value, then it will be underinsured, putting you at risk of serious financial loss. Our guide explains more about the risks of underinsurance for landlords and how you can avoid this.
A rebuild cost assessment calculates the cost to rebuild your home from scratch if it were destroyed, and it is typically included as part of your building insurance policy. If not, you can contact a surveyor or your insurer to obtain one.
Buying a property is one of the biggest financial commitments you will make, and unexpected events can lead to significant costs. For this reason, homeowners should have both building insurance and contents insurance to fully protect their property and possessions. If you are renting, the landlord is typically responsible for arranging building insurance. However, it’s a good idea to advise your tenants to take out contents insurance to protect their personal belongings, especially since the cost of any damage to the property may be deducted from their deposit.
When purchasing a home with a mortgage, most lenders will require building insurance as part of the loan agreement. This is because rebuilding a property after a major event can be costly, and lenders want to protect their investment in the property's value. It is important to arrange building insurance at the time of exchanging contracts when buying a home.
While contents insurance is not a requirement when taking out a mortgage, it is highly advisable for homeowners who wish to protect their belongings from damage or theft. Without home insurance, you would not be able to claim compensation for damages to your property or its contents. This means you would be responsible for covering the significant costs of repairing or replacing damaged items, which could easily exceed the cost of the insurance itself.
Both building and contents insurance protect you from the potentially high costs of damage caused by unexpected events like fire, floods, or storms. As a landlord, you are responsible for arranging building insurance. In shared ownership properties, building insurance is typically managed by the housing association.
For homeowners, a combined buildings and contents insurance policy is often the most cost-effective option to protect against damage to the property. However, not everyone needs both types of coverage. For landlords, a landlord building insurance policy, such as Total Landlord’s Premier policy, typically provides sufficient protection for the property. Unless the property is furnished, contents insurance is usually unnecessary. Similarly, renters do not need building insurance, as that’s the landlord’s responsibility, but contents insurance can be a smart choice for tenants to protect their personal belongings from damage or theft.
When deciding on the types of insurance to consider, think about factors such as the value of any of your possessions in the property, the risks associated with your location, and your budget. As a homeowner, it is important to protect both the structure of your property with building insurance and your personal belongings with contents insurance, especially you are renting out a furnished property. The location of your home also plays a role; if you are in an area prone to natural disasters or high crime, you will need more extensive coverage. Finally, make sure that the insurance you choose fits within your budget, balancing adequate protection with affordability.
The buildings sum insured refers to the amount needed to fully rebuild your property from scratch in the event of complete destruction. This figure includes the cost of materials, labour, demolition, debris removal, local authority fees, and any professional fees associated with the rebuilding process. The amount you insure your property for should reflect the rebuild cost, not its market value or what you originally paid for it.
If you are unsure how to calculate the rebuild cost, you can refer to resources like the BCIS (Building Cost Information Service) for guidance or consult a qualified surveyor for a more accurate valuation.
The cost of building insurance is influenced by several factors, including the rebuild cost of your property, its size, and location. Properties in areas prone to natural disasters or higher crime rates may experience higher premiums. Additionally, the age, condition, and security features of your home can also impact the overall cost of coverage.
Building insurance covers the structure of your property, including walls, roof, and fixtures, protecting against damage from events like fire or flooding. Home insurance typically combines building insurance and contents insurance, which covers personal belongings inside the home.
If you are a homeowner, having home insurance is strongly recommended to protect you financially from the cost of rebuilding or repairing damage to your property and belongings.
In the UK, home insurance is not legally required, but it is highly recommended to protect your property and belongings from unforeseen circumstances.
Home insurance is not mandatory by law, but if you have a mortgage, building insurance is usually a condition set by lenders. Contents insurance is optional but advisable.
Home insurance generally covers both the structure of your home and the belongings inside. Building insurance protects the physical structure, including the walls, roof, floors, and fixtures like windows and built-in furniture. Contents insurance covers personal items such as furniture, electronics, clothing, and jewellery, providing protection in case they are damaged, stolen, or destroyed.
Additionally, many policies offer optional extras for more comprehensive coverage. For example, accidental damage cover protects against unexpected accidents, such as spilling paint or breaking a window. Personal possessions cover extends protection for items like phones, laptops, and bikes when outside the home, while alternative accommodation cover helps pay for temporary housing if your home becomes uninhabitable due to an insured event, like a fire or flood.
The type of insurance you need depends on your situation. As a homeowner, you will require building insurance to cover the structure of your property, along with contents insurance to protect your personal belongings. If you are renting, building insurance is the landlord’s responsibility, but it is still recommended to have contents insurance for your own possessions.
The main types of home insurance in the UK are building insurance, which covers the structure of your home, and contents insurance, which covers your personal belongings.
If you are renting a flat in a split house, building insurance is the landlord's responsibility, not the tenants.
Contents insurance is not legally required, but it is highly recommended to cover your personal belongings from damage, theft, or loss.
No, landlord insurance typically includes building insurance, but it also covers additional risks specific to rental properties, such as tenant damage, loss of rent, and liability. Building insurance covers only the physical structure of the property. To learn more read Total Landlord Insurance guide on Landlord Insurance.
Building insurance typically covers damage caused by:
It is also important to note that many building insurance policies will not cover damage caused by old, poorly maintained pipes, especially if they leak due to age or lack of proper maintenance.
Building insurance typically does not cover the following:
When evaluating building insurance policies, it is important to consider the rebuild cost of your property, the value of your belongings, and the risks associated with your location, such as natural disasters or crime. By assessing these factors, you can determine if you need extra coverage, like accidental damage or personal possession cover for high-value items.
When choosing building and home insurance, it is important to assess your property’s value, the level of coverage you need, and whether you need additional protections, such as contents or accidental damage.
