How Buildings and Contents Insurance Works
Buildings insurance covers the physical structure of your home — walls, roof, floors, fitted kitchen, fixed bathroom fittings, and permanent fixtures. If the structure is damaged by fire, storm, flood, subsidence, or burst pipes, buildings insurance pays to repair or rebuild it.
Contents insurance covers everything inside that is not fixed to the structure — furniture, electronics, clothing, appliances, and personal belongings. The simplest test: if you turned your home upside down, everything that fell out is contents.
Owner-occupiers of houses typically need both. Renters only need contents insurance — the landlord is responsible for the building. Flat owners should check whether the building's management company already holds a policy covering the structure before purchasing separately.
How Coverage Is Calculated
Buildings Coverage = Rebuild Cost + Debris Removal (10%) + Architect Fees (5%)
Contents Coverage = Total Contents Value + High-Value Items + Buffer (10%)
Rebuild cost is not the market value. It is the cost to demolish and reconstruct from scratch. Always insure for the full rebuild cost or you risk underinsurance on any claim.
Frequently Asked Questions
Do I need buildings insurance if I rent?+
No. As a tenant you have no insurable interest in the building structure. The landlord is responsible for insuring it. You only need contents insurance to protect your own belongings.
Why is rebuild cost different from market value?+
Market value includes the land your home sits on. Land cannot be destroyed, so it is excluded from insurance claims. The rebuild cost covers only the construction — labour, materials, professional fees, and debris removal. In most areas rebuild cost is lower than market value.
What is underinsurance and why does it matter?+
If you insure for less than the true rebuild or replacement value, insurers can apply the principle of average — they only pay the same proportion of your claim as you are insured for. For example, if your rebuild cost is €300,000 but you insured for €200,000, a €60,000 partial claim may only pay out €40,000.
Are high-value items automatically covered under contents insurance?+
Standard contents policies have a single-article limit — typically €1.000–€2.000 depending on the insurer. Any item above this limit, such as jewellery, cameras, or specialist equipment, must be separately listed on the policy. Otherwise the payout is capped at the limit regardless of the item's value.
Is a combined home insurance policy cheaper?+
Usually yes. Most insurers offer a 5–15% discount when buildings and contents are combined under one policy. It also simplifies claims — if a burst pipe damages both the structure and your furniture, you deal with one insurer rather than two disputing liability.