Buying your first home, adding to a growing property portfolio, or renting out a flat for the first time all come with one thing in common: the need to get your insurance right. Home insurance isn’t one-size-fits-all – buyers, landlords, and tenants all have different needs, and the wrong policy can leave you dangerously exposed when something goes wrong. This guide breaks down the main types of home insurance, so you can make an informed decision and protect your property, possessions, and income.
Related: How landlords can avoid common mistakes under new rental reforms
What are the main types of home insurance?
Home insurance falls into a handful of categories: buildings insurance, contents insurance, combined buildings and contents cover, landlord insurance, and tenant contents insurance.
There are also specialist policies for unusual properties and a range of optional add-ons that can extend your protection further. Knowing the difference between each is the first step to choosing the right cover for your situation.
Buildings insurance
So, what is buildings insurance? In simple terms, it covers the physical structure of your home including the walls, roof, windows, floors, and permanent fixtures like kitchens and bathrooms against risks such as fire, flooding, storm damage, subsidence, and vandalism.
If you have a mortgage, your lender will almost always require buildings insurance as a condition of the loan, since the property is their security against the debt. For buyers, this should be arranged so cover starts from the day you exchange contracts, not just completion, as you become legally responsible for the property at that point.
Contents insurance
Contents insurance protects the things inside your home – furniture, electronics, clothing, jewellery, and other personal belongings against theft, fire and accidental damage. Unlike buildings insurance, it’s rarely a legal or mortgage requirement, but it’s well worth having given how costly it can be to replace a home’s contents after a burglary or a burst pipe. Policies typically offer either “new for old” replacement or indemnity cover, so it’s worth checking which basis your policy runs on.
Combined buildings and contents insurance
For many homeowners, combined buildings and contents insurance is the most practical and cost-effective option. Bundling both types of cover under a single policy often works out cheaper than buying them separately, and it simplifies claims if an incident such as a fire or flood damages both the structure of your home and your possessions at once. If you own and live in your property, this combined home insurance route is usually the natural starting point.
Landlord insurance
If you’re renting out a property, standard home insurance won’t cut it. Landlord insurance is designed specifically for rental properties and typically includes buildings cover, along with landlord-specific protections such as loss of rent if the property becomes uninhabitable, liability cover in case a tenant or visitor is injured, and cover for malicious damage caused by tenants.
Some policies also offer legal expenses cover, which can help with the cost of pursuing rent arrears or eviction proceedings. Given the added risks of letting a property, landlord insurance is an essential consideration for any buy-to-let investor.
Tenant contents insurance
Tenants often assume their landlord’s insurance covers their belongings, but it doesn’t. Tenant contents insurance, sometimes called renters insurance, protects a tenant’s personal possessions within a rented property against theft, fire, and accidental damage.
It’s an affordable way for renters to safeguard their belongings, and many policies can also include accidental damage to the landlord’s fixtures and fittings, which can help avoid disputes over deposit deductions at the end of a tenancy.
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Specialist home insurance
Not every property fits a standard policy. Listed buildings, thatched roofs, non-standard construction homes, high-value properties, or homes left unoccupied for extended periods often require specialist home insurance. These policies are tailored to the unique risks involved and may cost more, but they ensure you’re not left underinsured or with a claim rejected on a technicality.
Optional home insurance add-ons
Beyond the main policy, insurers offer various add-ons to extend your protection: accidental damage cover, home emergency cover for boiler breakdowns or plumbing issues, legal expenses cover, and cover for valuables above standard single-item limits.
For landlords, rent guarantee insurance is a particularly popular add-on, offering peace of mind if a tenant stops paying rent.
Which type of home insurance do you need?
- Buyers/homeowners: Combined buildings and contents insurance.
- Landlords: Landlord insurance, with optional rent guarantee and legal expenses cover.
- Tenants: Tenant contents insurance.
- Owners of unusual or high-value properties: Specialist home insurance.
Related: The hidden costs of buying a house: what to budget for beyond the purchase price
Factors to consider before choosing a policy
Before committing to a policy, consider the rebuild cost of your property (not the market value), the total value of your contents, your excess levels, any exclusions in the small print, and whether the insurer has a strong reputation for handling claims.
For landlords, also check whether the policy covers multiple properties or different tenant types, such as students or HMOs.
Common mistakes when choosing home insurance
Common pitfalls include underinsuring contents, assuming a standard policy covers a rental property, forgetting to update cover after renovations, ignoring policy exclusions, and simply renewing without shopping around each year. Taking the time to review your circumstances annually can save you significant money and stress if you ever need to make a claim.
Looking for tailored advice on protecting your property investment? Speak to your local Martin & Co branch today for guidance on buildings, contents, and landlord insurance options suited to your needs.
