UK home insurance costs £150–£400 per year for a combined buildings and contents policy. If you have a mortgage, buildings insurance is almost certainly required. Here’s what you need to know.
Types of Home Insurance
Type
What It Covers
Who Needs It
Buildings insurance
Structure, walls, roof, fixtures
Homeowners (mortgage required)
Contents insurance
Belongings inside the home
Everyone (optional but wise)
Combined policy
Both buildings + contents
Homeowners (best value)
Average Annual Costs
Cover Type
Average Cost
Range
Buildings only
£200
£100–£500
Contents only
£100
£50–£250
Combined
£250
£150–£600
What Affects Your Premium
Factor
Impact
Location
Flood zones, crime rates, subsidence risk
Property type
Detached costs more; flats less
Rebuild value
Not market value — structural rebuild cost
Contents value
More stuff = higher premium
Claims history
Previous claims raise prices
Security
Alarms, locks, and CCTV reduce premiums
Excess level
Higher voluntary excess = lower premium
Buildings Insurance: Key Details
Detail
Standard Cover
Rebuild cost
Use BCIS calculator, not market value
Standard cover
Fire, flood, storm, theft, subsidence
Usually excluded
General wear and tear, gradual damage, pest damage
Typical excess
£100–£500
Mortgage requirement
Almost always required by lender
Contents Insurance: How Much Cover
Household Type
Typical Contents Value
Studio / 1-bed
£10,000–£20,000
2-bed flat/house
£20,000–£35,000
3-bed family home
£35,000–£55,000
4-bed+ home
£55,000–£100,000+
Tip: Most people underestimate their contents value. Do a room-by-room inventory to check.
How to Save on Home Insurance
Strategy
Potential Saving
Compare annually
10–40%
Increase voluntary excess
5–15%
Pay annually (not monthly)
Save interest charges
Improve security
5–10%
No-claims discount
Builds over years
Multi-policy discount
5–10%
Avoid small claims
Keeps no-claims intact
Bottom Line
Homeowners need buildings insurance (your mortgage lender requires it) and should add contents cover for a combined policy. Renters only need contents insurance. Compare every year at renewal — loyalty costs UK households an average of £100+ per year in overpayment. Increase your voluntary excess if you can afford a £250–£500 claim out of pocket to lower premiums.