What is building insurance and do you need it?

If you’re renting or buying a home in the UK, you might have questions on building insurance. Is it different from home insurance? What happens if there's an accident? Will it cover my valuables?

In this guide, we’ll explain what building insurance is, how it works, how much it costs, and when you might actually need it.

If you are getting set up in the UK, you can also explore Marshmallow’s building and contents insurance to see what options are available.

What is building insurance?

Building insurance covers the physical structure of your home. That includes the parts you cannot easily take with you if you move out, such as:

• Walls, roof, and floors
• Windows and doors
• Permanent fixtures like kitchens and bathrooms
• Pipes, wiring, and drains

If something damages the structure, building insurance helps cover the cost of repairs or rebuilding.

For example, it can protect you if your home is damaged by:

• Fire
• Flooding
• Storms
• Subsidence (ground movement)
• Burst pipes

It focuses on the building itself, not the belongings inside. That is where contents insurance comes in..

Is building insurance the same as home insurance?

Buildings insurance is a particular type of home insurance. Home insurance is used as a more general term, and can include policy types such as:

• Buildings insurance: Covers the structure of the home
• Contents insurance: Covers your personal belongings
• Combined home insurance: Covers both the building and your belongings in one policy
• Rental and landlord insurance: Designed to suit the specific needs of landlords or their tenants
• Second home insurance: Cover for a property that isn’t where you live most of the time

If you rent, you will normally only need contents insurance. The landlord is responsible for insuring the building itself.

If you own the property, you’ll likely want building insurance too. And if you have a mortgage, your lender will often require it.

How much is building insurance?

The cost of building insurance can vary depending on the property and where it is located. The price is influenced by:

• The rebuild cost of your home
• Your postcode
• The type and age of the property
• Previous claims
• Local risks, such as flooding or subsidence

The rebuild cost is especially important. This is not the same as the market value of your home. It is the amount it would cost to rebuild it from scratch.

If you have recently moved to the UK, you may find prices vary more than expected. Some insurers rely heavily on UK-based history, which not everyone has yet.

It can help to compare options carefully and look for providers that understand people who are new to the system.

Do you actually need building insurance?

Your need for building insurance usually depends on your situation:

• If you own your home: Your home is a big financial investment. You could lose it all if there was a fire, so most people get building insurance as protection. If you have a mortgage, it is usually required as part of your agreement.
• If you rent: You do not normally need building insurance. Your landlord will typically have it in place. You may still want contents insurance to protect your own belongings inside the property.
• If you are in shared housing: Check your agreement. In most cases, the building will be covered by the landlord or property owner, not you.

Building insurance on an empty property

An empty property can be treated differently by insurers. If a home is left unoccupied for a long period, the risk of damage can increase. For example, a leak might go unnoticed, or there may be a higher risk of break-ins.

Because of this, standard building insurance policies often have limits. Some may only cover an empty property for a set number of days, such as 30 or 60 days.

If your property will be empty for longer, you may need a specific type of cover or to inform your insurer. It is important to check this carefully. If the insurer is not aware, it could affect a future claim.

What does building insurance usually cover?

Most building insurance policies cover common risks, although the details can vary.

Typically, they includes:

• Fire and smoke damage
• Flooding and water damage
• Storm damage
• Theft or attempted theft (damage to the structure)
• Subsidence or ground movement

Some policies may also cover things like accidental damage to fixtures, but this is typically an optional extra.

What is not covered can be just as important. General wear and tear or poor maintenance are usually excluded.

Summary

Building insurance protects the structure of your home, not the items inside it. Here are the key points to remember:

• It covers walls, roof, floors, and permanent fixtures
• It is usually required if you own your home and have a mortgage
• Renters do not typically need it, but may need contents insurance instead
• The cost depends on your home, location, and rebuild value
• Empty properties may need special consideration

If you moving house, you can explore Marshmallow’s building and contents insurance or get a quote to see what works for you.