Buildings vs contents vs combined: what each covers
Choosing the best home insurance UK policy starts with understanding which of the three product types matches how you occupy the property. Buildings insurance protects the permanent structure and the fixtures bolted to it, contents insurance protects the moveable possessions inside, and a combined policy bundles both under one renewal. Each is priced and underwritten differently, and getting the split wrong is one of the most common reasons a valid loss ends up only partly paid.
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Compare Quotes →| What it protects | Buildings only | Contents only | Combined |
|---|---|---|---|
| Structure (walls, roof, floors) | Covered | Not covered | Covered |
| Fixtures (kitchen units, sanitary ware) | Covered | Not covered | Covered |
| Personal possessions (furniture, electronics) | Not covered | Covered | Covered |
| Accidental damage | Optional add-on | Optional add-on | Optional add-on (either part) |
| Alternative accommodation | Covered (if home uninhabitable) | Covered (loss of use of contents) | Covered |
| Who typically needs it | Homeowner (often a mortgage condition) | Tenant (renter) | Owner-occupier |
Owner-occupiers almost always want a combined policy, and mortgage lenders make buildings cover a condition of the loan. Tenants need contents only, because the landlord insures the structure. Landlords occupy a separate category: a standard owner-occupier policy will not respond to a let property, so a landlord needs buildings cover written on a specialist landlord basis, with contents cover only for items they themselves provide such as white goods or carpets. The practical test is ownership of risk. If you own the bricks and mortar you carry the structural risk; if you only own what would fall out if the house were turned upside down, contents cover is enough. Combining the two with one insurer usually trims the premium and removes the awkward arguments over whether a fitted wardrobe or a built-in oven is structure or possession when a single event damages both.
Home insurance claims and the Financial Ombudsman Service
When a home insurance claim is declined or underpaid, the dispute does not end with the insurer. The Financial Ombudsman Service (FOS) is the free, independent body that settles complaints between consumers and FCA-authorised firms. You must first complain to the insurer and obtain its final response; you can then refer the matter to the FOS once you have that final response or, failing that, once eight weeks have passed since you complained. The FCA's Insurance Conduct of Business Sourcebook (ICOBS) requires insurers to handle claims promptly and fairly, and the ombudsman applies that same fairness test when it reviews a file.
Home cover is a persistent source of complaints. According to Financial Ombudsman Service data published for 2024, buildings insurance generates several thousand new complaints a year and remains one of the most-complained-about general insurance products, with the ombudsman upholding a meaningful share in the consumer's favour. The most commonly rejected claim reasons are consistent year on year: escape of water disputes (over how a leak occurred and what counts as a sudden event), subsidence claims (causation and the cost of underpinning), wear and tear or gradual deterioration exclusions, and under-insurance, where the sum insured is too low and the insurer applies averaging to scale down the payout. Keeping an accurate buildings rebuild cost and a realistic contents valuation is the single best defence against an averaging deduction. The ombudsman cannot fine an insurer, but it can direct the firm to settle a claim, pay interest on a delayed payment, and award compensation for distress and inconvenience, and its decisions are binding on the insurer if the consumer accepts them. Referrals are free, and most cases are decided on the documents, so keeping the schedule, photographs of damage, and the insurer's correspondence improves the odds of an upheld complaint.
Specialist home insurance: listed buildings, flood risk and subsidence
Standard panels do not always quote for higher-risk or non-standard homes, but cover almost always exists somewhere in the specialist market. The British Insurance Brokers' Association (BIBA) runs a Find Insurance signposting service that puts consumers in touch with brokers who handle hard-to-place risks, including listed buildings, properties with a history of subsidence, and homes of non-standard construction such as timber frame, thatch, flat roofs or concrete prefabs. Using a specialist broker matters because non-standard construction is frequently excluded or heavily loaded on mainstream policies.
Flood risk is handled differently again. Flood Re is an industry-funded reinsurance scheme that lets insurers pass the flood element of a home policy into a central pool, so households in high-risk areas can still obtain affordable buildings and contents cover with flood protection. Eligibility is broad for residential homes in Council Tax bands, but the scheme excludes properties built after 1 January 2009, which keeps new development off flood plains out of the subsidised pool. For listed buildings, a further obligation applies: repairs after an insured loss must usually be like-for-like using original or matching materials and traditional methods to satisfy listed-building consent, which raises rebuild costs and is why a heritage-aware insurer and an accurate, surveyed sum insured are essential. Whether the issue is flood, subsidence, listed status or unusual construction, the route is the same: an FCA-authorised specialist insurer or a BIBA-referred broker, checked against the FCA Register before you buy.
TL;DR
- Home insurance covers buildings (the structure) and/or contents (possessions inside the property).
- FCA pricing rules since January 2022 ban charging renewing customers more than equivalent new customers.
- Average UK home insurance premiums rose through 2024-25 in line with rising rebuild and replacement costs.
- Underinsurance - insuring for less than the full rebuild cost - is one of the most common claims problems.
- Policies are regulated by the FCA. Complaints go to the Financial Ombudsman Service.
Last reviewed: May 2026 | Sources: FCA, ABI, FOS
Home insurance in the UK is regulated by the FCA. This guide explains what policies cover, how premiums are set, and what policyholders should check. For travel-related insurance see the travel insurance for over 70s guide or senior travel insurance guide.
Buildings insurance: what it covers
Buildings insurance covers the physical structure of a property and permanent fixtures. Standard cover includes damage from fire, flood, storm, subsidence, escape of water, and malicious damage. Most policies exclude gradual deterioration and wear and tear. Mortgage lenders normally require buildings insurance as a condition of the mortgage offer.
Contents insurance: what it covers
Contents insurance covers personal possessions inside the home. High-value single items may need to be separately specified. Personal possessions cover can extend contents insurance to items outside the home. For specialist possessions see also the mobile phone insurance guide.
RELATED GUIDES: Home, Property, and Insurance
How home insurance premiums are calculated
Key factors for buildings insurance include the rebuild value, construction type, location flood and subsidence risk, age of the property, and claims history. Rebuild value is the cost to demolish and rebuild the property from scratch - not the market value. Rebuild costs have risen significantly since 2022 due to construction material and labour inflation.
FCA pricing rules: no loyalty penalty
From 1 January 2022, FCA rules (PS21/5) prohibit home and motor insurers from charging renewing customers a higher premium than they would charge an equivalent new customer for the same product. Insurers can still increase premiums at renewal to reflect genuine risk changes, but cannot apply a renewal loading purely because the customer is unlikely to shop around.
FCA regulation and complaints
Home insurance providers must be FCA-authorised. Insurers must provide an Insurance Product Information Document (IPID) before the customer enters into a contract. Complaints unresolved within 8 weeks can be referred to the Financial Ombudsman Service. FSCS provides 90% compensation for outstanding claims if an authorised insurer becomes insolvent.
Disclaimer: This article is for informational purposes only. It does not constitute insurance advice. Policy terms, cover, and premiums vary significantly between providers. Always read the IPID and policy schedule before purchasing. Verify the provider FCA authorisation before buying.
Frequently asked questions
Is home insurance compulsory in the UK?
Buildings insurance is not legally compulsory but mortgage lenders require it as a condition of the mortgage. Contents insurance is not compulsory for any category of occupier.
What is an excess on home insurance?
An excess is the amount the policyholder pays towards each claim before the insurer pays the rest. There is typically a compulsory excess set by the insurer and an optional voluntary excess chosen by the policyholder. A higher voluntary excess reduces the premium but increases the amount paid in the event of a claim.
What does the FCA loyalty penalty ban mean for renewals?
Since January 2022, insurers cannot charge renewing customers more than a new customer for the same risk and cover. If the renewal quote appears higher than quotes available to new customers for equivalent cover, the policyholder has grounds to challenge the insurer or switch provider.
What is underinsurance?
Underinsurance occurs when the sum insured is lower than the actual cost to replace or rebuild. A total loss claim may result in the insurer applying an average clause, paying only a proportional amount. Regularly reviewing rebuild cost against RICS guidance reduces this risk.
Does home insurance cover accidental damage?
Accidental damage is usually an optional extension at additional cost. Standard policies do not automatically include it. Check the policy terms to confirm whether accidental damage is included before assuming cover.
How this guide was verified
This article draws on FCA Policy Statement PS21/5, ABI home insurance statistics, FOS complaint data, RICS house rebuilding cost guidance, and FSCS guidance. No secondary aggregator sites were used.
