Are there different types of home insurance policies?

The short answer is yes. The longer answer is that the differences aren’t always obvious at first glance, which is why people often end up with a policy that technically exists but doesn’t quite fit.

Home insurance isn’t one single product. It’s a family of policies built around how a property is owned, lived in, and used.

Buildings insurance

Buildings insurance covers the structure of the property itself. Walls, roof, floors, ceilings, and permanent fixtures like fitted kitchens and bathrooms.

This type of policy is usually required by mortgage lenders, because the building is the security for the loan.

• Structural damage from insured events
• Permanent fixtures and fittings
• Rebuild costs rather than market value

It’s the backbone of most home insurance arrangements.

Contents insurance

Contents insurance covers what you bring into the home. Furniture, appliances, clothes, electronics, carpets and curtains.

It’s optional in most cases, but losses under contents policies tend to be more common than major building claims.

• Household belongings inside the property
• Items stored in garages and sheds, within limits
• Specified cover for higher-value items

Combined buildings and contents policies

Combined policies package buildings and contents together under one contract. Same insurer, same renewal date, shared assumptions.

They’re popular because they’re convenient and often priced competitively.

The building and contents sections still have their own limits and conditions, even though they sit together.

Buildings-only policies

Buildings-only insurance is common where contents are minimal, or where contents are insured elsewhere.

It’s also typical for buy-to-let properties where the landlord isn’t providing much in the way of furnishings.

For leasehold flats, buildings insurance is often arranged centrally by the freeholder rather than individually.

Contents-only policies

Contents-only insurance suits tenants and leaseholders whose building is insured by someone else.

It’s also used where the property itself isn’t owned, but the contents still represent a meaningful financial exposure.

These policies focus entirely on belongings and personal possessions.

Landlord insurance

Landlord insurance is designed for rented properties rather than owner-occupied homes.

It usually includes buildings insurance, landlord contents, property owners’ liability, and optional sections such as loss of rent.

• Cover aligned to tenancy arrangements
• Options for tenant-related damage
• Different assumptions from standard home insurance

Specialist and non-standard policies

Some homes don’t sit comfortably within standard policy terms. Listed buildings, non-traditional construction, thatched roofs, converted barns.

Specialist policies exist for these properties, often with higher premiums but clearer acceptance of the risks involved.

Trying to force an unusual property into a standard policy usually ends badly.

New for old and indemnity policies

Many modern policies offer new-for-old settlement, meaning items are replaced with new equivalents rather than depreciated values.

Older or more basic policies may settle on an indemnity basis, reflecting wear and age.

This difference affects claims outcomes far more than it affects headline pricing.

Optional extensions that change the shape of a policy

Accidental damage, personal possessions outside the home, legal expenses, home emergency assistance. These aren’t separate policies, but they materially alter how one behaves.

Two policies with the same label can respond very differently once these sections are added or removed.

Choosing the type that fits

The right type of home insurance depends on ownership, occupancy, construction, and use. Not on what’s most common or easiest to buy.

Understanding the different policy types makes it easier to see where a standard option works well, and where something more specific is needed.

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