Home insurance is one of those things you set up, forget about, and only think about again when something goes wrong. Then you discover what’s actually covered, what isn’t, and what excess you’re going to be hit with. As a dad of two with a house full of kids who treat the walls like canvas and the carpet like a Slip ‘N Slide, I’ve learned to read the small print properly.
Here’s what UK families actually need from home insurance in 2026, what’s commonly excluded, and the surprises that catch people out — without recommending specific insurers (because the right one for you depends entirely on your house and circumstances).
Buildings vs contents — what’s the difference?
Buildings insurance
Covers the structure of your home — walls, roof, floors, fitted kitchens and bathrooms, permanent fixtures. If a fire damages the structure, this is what pays for rebuilding. Mandatory if you have a mortgage. Sum insured should reflect the rebuild cost (usually different from market value), which you can check via ABI’s BCIS calculator.
Contents insurance
Covers the stuff inside your home — furniture, appliances, electronics, clothing, toys, even food in the freezer. Optional but strongly recommended for families. Sum insured should be the cost of replacing everything new — most people significantly under-estimate this. £40,000–£80,000 is typical for a family of four.
Combined buildings & contents
Most insurers offer combined policies, often slightly cheaper than buying separately. Same provider for both also simplifies claims that involve both (e.g. a burst pipe that damages both the floor and your sofa).
What family home insurance typically includes
- Fire, flood, storm damage — buildings and contents
- Theft, attempted theft, vandalism
- Burst pipes / escape of water — including damage from leaks and the cost of finding the leak
- Subsidence (usually with a high excess of £1,000+)
- Trace and access cover — paying for the work to find a hidden leak or fault
- Alternative accommodation if your home is uninhabitable after a covered event
- Public liability — if you’re legally responsible for injury to a visitor or damage to a neighbour’s property
What’s typically NOT covered (and surprises people)
- Wear and tear — your roof slowly leaking, your washing machine dying, woodwork rotting. Insurance covers sudden events, not gradual deterioration.
- Maintenance issues — flat roof failure that should have been re-felted, gutters that overflowed because they weren’t cleaned.
- Damage caused by pets — dog chewed the sofa, cat scratched the leather chair. Standard policies exclude pet damage.
- Accidental damage by family — kids bashing the wall with the Hoover, ironing burns on the carpet. NOT covered unless you’ve added accidental damage cover (see below).
- Items used outside the home — phones, laptops, cameras taken out and lost or damaged. Need personal possessions cover (separate add-on).
- High-value individual items — engagement ring, expensive watches, art over a certain limit (often £1,500–£2,500). Need to be specifically listed.
- Working from home equipment — work laptops, work-related items often excluded. Check your contents includes WFH cover or get separate.
- Bicycles outside the home — usually need a specific add-on if you cycle.
- Storm damage to fences, sheds, gates — often excluded from storm cover. Read the small print.
- Floods if you live in a known flood-risk area — Flood Re scheme can help, but standard policies often exclude or sky-high excess.
Accidental damage cover — essential for families
Standard home insurance won’t pay out when your 4-year-old draws on the wall with permanent marker, when the football smashes the TV, or when the iron leaves a permanent mark on the carpet. Adding Accidental Damage cover (typically £30–£70/year extra) covers exactly these everyday family disasters.
Two flavours:
- Accidental damage to buildings — drilling through pipes, cracks in baths, kicking through plasterboard.
- Accidental damage to contents — spilled drinks, broken TVs, damaged carpets.
For families with children under 10, both are usually worth it. For families with teens, contents cover alone often suffices.
When to claim and when not to
Claiming on home insurance has consequences:
- You pay the excess (often £150–£500)
- Your premium typically rises 10–25% at next renewal
- Future quotes from other insurers may also be higher
Rule of thumb: only claim for losses significantly bigger than your excess, that you couldn’t reasonably absorb. Replacing a £200 broken TV under accidental damage with a £250 excess is pointless. Replacing a £15,000 burst-pipe disaster is exactly what insurance is for.
How to cut the cost
- Always switch at renewal — auto-renewal quotes are routinely 20–40% higher than new-customer prices for the same insurer. Use comparison sites every year.
- Higher voluntary excess — going from £150 to £350 typically saves 10–15% on premium. Only do this if you can comfortably cover the excess.
- Combined buildings + contents policies — usually 5–10% cheaper than separate.
- Pay annually, not monthly — monthly payment carries 8–15% APR effectively.
- Improve security — alarm, deadlocks, smoke alarms — all reduce premium. See my guide on home security for families.
- Don’t over-insure contents — be realistic about replacement costs. Over-insuring doesn’t protect more, just costs more.
- Bundle with other insurance — multi-policy discounts at insurers like Aviva, Direct Line, Admiral.
- Watch claim history — small claims now mean higher premiums for years. Self-fund what you can.
FAQ
Buildings insurance is the landlord’s responsibility. Contents insurance is yours, and strongly recommended — you’re covering your own furniture, electronics, clothes, and possessions. Tenant contents insurance is typically £80–£150/year.
Most families significantly under-insure. Realistic replacement cost for a family of four typically £40,000–£80,000. Walk through every room and add up replacement costs for furniture, electronics, clothes, toys, kitchenware. The number surprises most people.
Only if you’ve added accidental damage cover (typically £30–£70/year extra). Standard policies exclude damage caused by spills, breakages, drawing on walls, and similar everyday mishaps. For families with under-10s, accidental damage cover is usually worth adding.
Sometimes, sometimes not. Many policies cover home-based clerical work but exclude business equipment or visiting clients. Check the small print or call your insurer. Working-from-home cover may need to be added or you may need a separate business policy.
Combined buildings and contents for a typical 3-bed semi: £150–£350/year. Larger or higher-value homes, flood-risk areas, or claims history all push higher. Always compare at renewal — staying loyal costs you significant money.
Inside the home and locked outbuildings, usually yes (subject to limits). Outside the home (locked at a school, station, etc.), usually only with a specific bike cover add-on. For valuable bikes (£500+), check the per-item limit and add cover if needed.
Depends on materiality. Forgetting to mention you have a small fish tank — fine. Forgetting your business runs from your home, that you’re underpinning subsidence, or you have £20k of jewellery — could void the policy when you claim. When in doubt, declare and let the insurer adjust the premium.
The bottom line
Combined buildings and contents with accidental damage cover is the right baseline for most UK families. Switch every year at renewal, set excess at a level you can comfortably cover, and don’t claim for small things. Improving home security knocks money off too — see my guide on home security for families for what’s actually worth installing.
