Building and Contents Home Insurance: A Plain-English Guide

Building and contents home insurance is a combined policy that protects both the physical structure of your home and the belongings inside it under one annual premium. Buildings cover pays to repair or rebuild the bricks, roof, walls and permanent fixtures; contents cover replaces your furniture, appliances, electronics and personal possessions. Most UK homeowners buy the two together because it is usually simpler to manage and often cheaper than two separate policies.

The average combined buildings and contents premium was £383 a year for policies bought in April to June 2026, according to figures from the Association of British Insurers (ABI). Getting the cover right matters more than chasing the lowest headline price: under-insuring your rebuild cost or contents can leave a claim short-paid, while over-insuring wastes money. Free Price Compare compares home insurance from a panel of 42 UK providers, so you can see buildings, contents and combined quotes side by side.

Last updated: October 2026

Written by the Free Price Compare editorial team | Reviewed October 2026

What building and contents home insurance actually covers

Building and contents home insurance covers two distinct things: the fabric of your property and everything you would take with you if you moved. Buildings insurance pays to repair or rebuild the permanent structure, including walls, roof, floors, fitted kitchens and bathrooms, and usually permanent outbuildings like a garage or shed. Contents insurance covers movable possessions such as furniture, clothing, electronics, carpets and white goods.

Both parts typically protect against the same core risks: fire, theft, storm, flood, escape of water from burst pipes, subsidence, and malicious damage. A combined policy puts both under one renewal date and one insurer, which keeps a claim involving both the structure and your belongings simpler to settle. If a burst pipe damages a ceiling and ruins the carpet beneath it, one claim covers both.

If you want a deeper breakdown of how the two parts differ, our guide on the key variances between buildings and contents insurance sets them out side by side.

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Is buildings insurance the same as home insurance?

Buildings insurance is not the same as home insurance; it is one half of it. “Home insurance” is an umbrella term that usually refers to a combined policy made up of buildings cover and contents cover, which can be bought together or separately. Buildings insurance on its own covers only the structure, not the possessions inside.

The difference between home insurance and building insurance comes down to scope. A buildings-only policy suited a landlord or someone whose contents are minimal; a full home insurance policy adds contents protection for your belongings. For most owner-occupiers, the sensible default is combined building and contents home insurance, because a fire or flood rarely damages only the structure and leaves possessions untouched.

How much does building and contents home insurance cost in 2026?

The average combined building and contents home insurance premium was £383 a year for policies purchased in April to June 2026, according to the ABI. Buildings-only cover averaged £309 and contents-only £118 over the same period. Prices had fallen across most of 2025 and early 2026, with the ABI reporting several consecutive quarterly falls before a modest quarter-on-quarter rise of £8 in the April-June 2026 figure.

Figures are market averages for April to June 2026 (ABI) and are indicative only; your own quote depends on your postcode, rebuild cost, claims history and chosen excess.

A real quote is always specific to your property. Your price depends on where you live, the cost to rebuild your home, how you built it, your claims history and the excess you agree to pay. You can see how your own figure compares by running a cheap house insurance comparison rather than relying on the average.

Is combined cover cheaper than two separate policies?

Combined cover is usually cheaper than buying buildings and contents separately. Comparing market averages suggests that separate buildings and contents policies may cost more than a combined policy, but any saving depends on the individual quotes. This is a comparison of market averages, not a guaranteed saving on any single quote, but it reflects why most insurers price a bundled policy more keenly.

Combined cover also removes the risk of a dispute over which insurer pays when an event damages both structure and contents. For most owner-occupiers, a single home and contents insurance policy is the simpler and more cost-effective starting point.

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What is sum insured and how much cover do I need?

The sum insured is the maximum amount your insurer will pay out, and setting it correctly is the single most important decision when you buy cover. For buildings, the sum insured must match your rebuild cost, not the market value or the price you paid. For contents, it should reflect what it would cost to replace everything you own as new.

Rebuild cost is the amount it would take to completely rebuild your home from the ground up, including demolition, materials, labour and professional fees. It is often lower than the market value in high-demand areas and higher in cheaper ones, because the land is not being rebuilt. You can get a rebuild estimate from a surveyor or the BCIS rebuilding cost calculator; underestimating it risks your claim being reduced if you are found to be under-insured.

There is no standard sum insured that suits every home: set buildings cover to the full rebuild cost and contents cover to the cost of replacing your belongings as new. Larger or non-standard properties often need a bespoke figure. Our guide on how much home insurance you need walks through working out both figures.

• Set buildings cover to the full rebuild cost, including fees and debris removal.
• Add up contents room by room at today’s replacement prices, not what you paid.
• List high-value items like jewellery, bikes and watches separately if they exceed the single-item limit.
• Review both figures at renewal, especially after renovations or big purchases.

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What is accidental damage in buildings insurance?

Accidental damage in buildings insurance covers sudden, unexpected damage to the structure caused by a one-off accident, such as putting a foot through the loft floor or drilling into a water pipe. It is almost always an optional add-on rather than standard cover, so you need to check whether your policy includes it.

Standard buildings cover protects against named perils like fire, storm and flood. Accidental damage buildings insurance extends that to everyday mishaps the main policy excludes. The same principle applies to contents: accidental damage on contents covers things like spilling wine on a sofa or dropping a television, but it is typically a paid extra.

Does contents insurance cover accidental damage?

Contents insurance does not automatically cover accidental damage; it is usually an optional upgrade. Without it, a standard contents policy pays out for theft, fire, flood and escape of water, but not for knocking over and breaking your own possessions. If you have children, pets or expensive electronics, adding accidental damage is often worth the extra premium.

Always read the policy wording for single-item limits and whether cover extends outside the home. Some contents policies include personal possessions cover for items you take out and about, such as a phone or laptop, but this is frequently a separate add-on.

Does contents insurance cover boilers?

Contents insurance does not cover your boiler, because a boiler is a permanent fixture and falls under buildings insurance, not contents. Buildings cover will typically pay out if your boiler is damaged by an insured event such as fire, escape of water or lightning.

Buildings insurance does not cover a boiler that simply breaks down from age or wear and tear. For mechanical breakdown you need separate boiler cover or a home emergency add-on, which many insurers offer alongside a standard policy. Check whether your policy includes home emergency cover before assuming a boiler repair is protected.

What is not covered? Common exclusions and the excess

The excess is the amount you agree to pay towards any claim before your insurer covers the rest, and it applies to both buildings and contents claims. A policy may carry a compulsory excess set by the insurer plus a voluntary excess you choose; raising the voluntary excess lowers your premium but increases what you pay at claim time. Subsidence claims almost always carry a much higher excess, often £1,000 or more.

Standard home insurance excludes wear and tear, gradual deterioration, poor maintenance and damage that builds up over time. It also excludes general wear to a boiler, infestations, and in most cases damage to an unoccupied home left empty beyond the policy limit, usually 30 to 60 consecutive days. If you leave a property empty for longer, you need specialist home insurance that covers unoccupied homes.

• Wear and tear, rot and gradual damage are never covered.
• Accidental damage is usually an add-on, not standard.
• Homes left unoccupied beyond the policy limit may not be covered.
• Valuables above the single-item limit need to be specified.
• Deliberate damage and poor DIY are excluded.

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Do renters need buildings and contents insurance?

Renters do not need buildings insurance, because the landlord is responsible for insuring the structure. If you rent, you only need contents insurance to protect your own belongings, since the building and anything fixed to it is the landlord’s responsibility. Contents insurance is worth it for renters who could not afford to replace their furniture, electronics and clothes after a fire or burglary.

The same logic applies to many flat owners. If you own a leasehold flat, buildings insurance is often arranged by the freeholder or management company and paid through your service charge, so you may only need contents cover yourself. Check your lease and service charge statement before buying buildings insurance you do not need; our guide for home insurance for leaseholders explains how this works.

Is buildings insurance compulsory?

Buildings insurance is not a legal requirement, but it is almost always a condition of a mortgage. If you borrow to buy a home, your lender will require buildings insurance in place from the point of exchange, because the property is their security. Owning your home outright means buildings cover is optional, though going without leaves you fully exposed to the cost of rebuilding after a fire, flood or subsidence.

If your home sits in a flood-risk area, cover is still available through Flood Re, a scheme backed by the ABI that caps the flood element of a premium using a charge linked to your council tax band. This can make cover affordable for higher-risk homes, though the rest of the premium still reflects your wider risk and policy choices. Comparing quotes across several insurers is the best way to find a competitive buildings insurance quote whatever your risk profile.

• Cheap House Insurance: Cut Costs Without Cutting Cover
• Home and Contents Insurance: Keep Your Assets Safe
• Home Renovation Insurance: Protect Your Investment Today
• Key Variances: Buildings vs Contents Insurance Explained
• Determine Your Needs: How Much Home Insurance Do I Need

Information correct as of 24 October 2026. Prices, tariffs, policy details and providers change frequently, so please check the latest details before making a decision. This article is for general information only and does not constitute financial advice. Free Price Compare is authorised and regulated by the Financial Conduct Authority (FCA).