# Home Insurance

> Buildings versus contents cover, how to work out the right sum insured, common exclusions and your protection if an insurer fails.

Canonical page: [/insurance/home-insurance](/insurance/home-insurance/) · Last reviewed: 2026-08-22

Home insurance is not required by law, but a mortgage lender will usually insist on buildings cover, and most people want to protect the things they own. Here is how the two main types work.

## Key information

- Buildings cover protects the structure; contents cover protects your belongings
- Home insurance is not a legal requirement, though lenders usually require buildings cover
- Under-insuring can reduce what you are paid on a claim
- General insurance is normally protected at 90% by the FSCS if the insurer fails

## Buildings and contents cover

Buildings insurance covers the permanent structure of your home — walls, roof, floors and usually fitted kitchens and bathrooms — against events such as fire, storm and flood. Contents insurance covers your possessions, from furniture to electronics, if they are damaged, destroyed or stolen.

You can buy the two separately or as a combined policy. If you rent, your landlord normally arranges buildings cover, but your own belongings are your responsibility, so contents insurance is worth considering.

## Getting the sum insured right

The sum insured is the maximum your policy will pay out. For buildings it should reflect the cost of rebuilding your home, which is not the same as its market value. For contents it should reflect the cost of replacing your belongings. If you insure for too little, an insurer may [reduce a payout proportionately](/insurance/making-a-claim#excess-and-payouts), so it pays to review your figures regularly.

## Exclusions and optional extras

Every policy has exclusions and conditions — for example limits on individual high-value items, or a requirement to keep the property secure. Optional extras such as accidental damage, legal expenses or cover for items you take outside the home can be added, usually for a higher premium. Read the policy summary so you know what is and is not covered before you need to claim.

## Your rights

- If your insurer fails, most home insurance is protected at 90% of the claim by the Financial Services Compensation Scheme, with no upper limit — this is different from the fixed cash limit that applies to bank deposits.
- You must take reasonable care to answer the insurer’s questions honestly and completely when taking out or renewing cover.
- You can complain to your insurer and, if not satisfied with its final response, refer the matter free of charge to the Financial Ombudsman Service.

## Official sources

- [How the FSCS protects insurance](https://www.fscs.org.uk/what-we-cover/insurance/)
- [Financial Ombudsman Service](https://www.financial-ombudsman.org.uk)

## Related

- [Making a Claim](/insurance/making-a-claim/)
- [Insurance Renewals](/insurance/insurance-renewals/)
- [Complaints & Rejected Claims](/insurance/complaints-rejected-claims/)
- [First-Time Buyer Mortgages](/mortgages/first-time-buyer-mortgages/)
- [FSCS protection explained](/banking-savings/fscs-protection/)
- [Financial Directory](/tools-calculators/financial-directory/)

## Sources

- FSCS — [Insurance protection & compensation](https://www.fscs.org.uk/what-we-cover/insurance/) (accessed 2026-08-22)
- MoneyHelper — [Buildings and contents insurance](https://www.moneyhelper.org.uk) (accessed 2026-08-22)
- ABI — [Home insurance](https://www.abi.org.uk) (accessed 2026-08-22)