What is home insurance?
Home insurance is a policy that financially protects your home and the possessions inside it if something goes wrong. It covers the cost of repairing property damage or replacing stolen and damaged belongings after events like fire, flooding, storms and burglary, so you do not have to pay the full bill yourself.
In the UK, home insurance is sold in three forms. Buildings insurance protects the physical structure of the property. Contents insurance protects the things inside it. A combined policy bundles both on one contract, and is usually the cheapest route for owner-occupiers. Exactly which one you need depends on whether you own or rent your home.
The quick rule of thumb
If you own your home, you need buildings insurance (your mortgage lender will insist on it) and should add contents cover. If you rent, the landlord insures the building, so you only need contents insurance for your own belongings.
At a glance
Buildings vs contents vs combined cover
The three types of home insurance protect different things. This table shows who each one suits and what it covers, so you can work out which you actually need.
| Type of cover | Who it is for | What it protects |
|---|---|---|
| Buildings insurance Usually required by your mortgage lender | Homeowners and freeholders | The permanent structure: roof, walls, windows, doors, fitted kitchens and bathrooms, plus garages and outbuildings |
| Contents insurance Optional but strongly recommended for everyone | Homeowners, tenants and students | Your movable belongings: furniture, electronics, clothing, appliances and valuables against theft, fire and water damage |
| Combined home insurance Often cheaper than buying the two separately | Owner-occupiers | Both the structure and your belongings on a single policy |
Buildings insurance
Buildings insurance covers the physical structure you own: the roof, walls, windows, doors and permanent fixtures. It pays to repair or rebuild the property after damage from flooding, fire, extreme weather or subsidence. If you have a mortgage, your lender will require it.
More on buildings insuranceContents insurance
Contents insurance protects the movable belongings inside your home, from furniture and electronics to clothing and valuables, against theft and damage. Buildings cover will never replace your possessions, so contents cover is the only way to protect them, whether you own or rent.
More on contents insuranceWhat does home insurance cover?
A standard home insurance policy is built around a set of core risks. Buildings cover repairs the structure and contents cover replaces your belongings, but both respond to broadly the same list of insured events:
Fire and smoke damage
Theft and attempted break-ins
Storm and weather damage to the structure
Flooding and water escape from burst pipes
Subsidence and structural ground movement
Optional extras you can add
A basic quote covers a narrow set of situations. To widen your protection, most insurers let you bolt on extras for an additional premium. The most common are:
Accidental damage
Covers one-off mishaps such as spilling paint on a carpet or putting a foot through the loft floor, beyond the events in a standard policy.
Legal cover
Gives access to legal advice and helps with court costs for property, domestic or tenancy disputes, subject to the insurer assessing your case.
Home emergency
Round-the-clock access to accredited plumbers, electricians and tradespeople for urgent problems, with parts and labour often part-covered.
Personal possessions
Extends contents cover to items you take out of the home, such as phones, laptops, jewellery and bicycles.
What is not covered?
Home insurance policy wordings can be dense, and large numbers of British households misunderstand exactly what their cover includes. Most policies exclude the following, so check the wording carefully or read our dedicated guide on what is not covered:
- Wear and tear, gradual deterioration and poor maintenance;
- High-risk items above the single-item limit unless listed separately;
- Damage from pests, insects or vermin;
- Business equipment and stock kept at home;
- Belongings while away from the home unless personal possessions cover is added;
- Deliberate or malicious damage caused by you.
For plain-English definitions of terms like excess, indemnity and new-for-old, see our home insurance jargon buster.
Do you need home insurance?
Home insurance is not required by law, but it is rarely optional in practice. If you have a mortgage, your lender will make buildings insurance a condition of the loan. Even if you own your home outright, the cost of rebuilding after a serious fire or flood is far higher than most people could absorb, so going without is a significant gamble.
Tenants and students do not need buildings insurance because the landlord is responsible for the structure. They should still consider contents cover, as the landlord's policy will not pay to replace their personal belongings.
Homeowners
Need buildings cover; combined buildings and contents is usually the best value.
Tenants
Need tenants contents insurance only; the landlord covers the building.
Landlords
Need specialist buy-to-let insurance rather than a standard home policy.
How to choose and switch a policy
When you compare policies, look past the headline price. Check the single-item limit for valuables, the excess you would pay on a claim, whether cover is new-for-old, and which extras are included as standard. The cheapest quote is rarely the best if it leaves your most valuable possessions underinsured.
Switching is easier than most people assume, yet a large share of British households stick with the same insurer year after year and pay more than they need to as a result. Insurers have little incentive to flag a better deal, so it pays not to be complacent and to shop around at renewal.
We help people across the UK with their energy, broadband and insurance questions. See our step-by-step guide to switching home insurance for how to move policy without losing cover.
Compare UK home insurers
Whether you live in a flat, a semi-detached house or a stately home, the right insurer depends on your property and your priorities. Here is how some of the best-known UK home insurers compare.
Aviva
One of the largest UK insurers, with roots tracing back to fire insurers founded after the Great Fire of London. Its home policy is known for its simplicity and lack of fixed upper limits.
Read our Aviva review
AXA
Originally a French insurance group operating across 60 countries. AXA also underwrites many recognisable UK insurance brands, from Homeguard to Marks & Spencer.
Read our AXA review
Covea
Sells car and home insurance through brokers exclusively. The brand came about through the merger of Provident and Norman Insurance.
Read our Covea review
LV
Liverpool Victoria is a long-standing British insurer that started during the industrial revolution and works with brands such as Asda. LV joined forces with Allianz.
Read our LV reviewMore home insurance guides
Explore our full library of home insurance guides for deeper detail on each type of cover and situation:
Home insurance: frequently asked questions
Home insurance is a policy that protects your property and possessions against unexpected events such as fire, theft, flooding and storm damage. It splits into buildings insurance for the structure of the property and contents insurance for the belongings inside it. A combined policy bundles both together on a single contract.
A standard policy typically covers fire and smoke damage, theft, storm and weather damage, flooding, escape of water from burst pipes, and subsidence. Buildings cover repairs or rebuilds the structure, while contents cover replaces your belongings. Optional extras such as accidental damage, legal cover and home emergency can be added on top.
Buildings insurance is not a legal requirement, but if you have a mortgage your lender will almost always insist on it as a condition of the loan. Contents insurance is optional for everyone, including tenants and students, but it is strongly recommended because the cost of replacing all your belongings after a fire or burglary is usually far higher than people expect.
Home insurance generally excludes wear and tear, poor maintenance, damage caused by pests, business equipment, and deliberate damage. High-value items above the single-item limit, and belongings taken away from the home, are usually only covered if you list them separately or add personal possessions cover.
Tenants do not need buildings insurance because the landlord is responsible for the structure, but they should consider tenants contents insurance to protect their own belongings. Some students may be covered under their parents' home insurance while away at university, so it is worth checking before buying a separate policy.
Contact your insurer as soon as possible after the event, document the damage with photos and keep any receipts or evidence of value. Knowing exactly what your policy covers before you claim is the surest way to avoid a rejection. Our home insurance claims guide walks through the full process.