How does buildings and contents insurance work with your mortgage?  

Most mortgage lenders require you to have buildings insurance in place as part of your mortgage application before they release funds. This is because the property acts as security for the loan, and if something were to happen to the building, the lender needs assurance that it can be repaired or rebuilt.

While contents insurance isn’t usually mandatory for a mortgage, it’s highly recommended, especially if you’re moving into a new home and want peace of mind that your belongings are covered.

 
Do you need buildings and contents insurance for a mortgage?  

• Buildings insurance: Yes, it’s typically a condition of your mortgage agreement. 
  
  
• Contents insurance: This is not required by lenders but is essential for protecting your personal items. 

Having both types of cover ensures you’re fully protected from the unexpected, whether it’s a burst pipe or a break-in. 

How much does buildings and contents insurance cost?  

The cost of your policy depends on several factors, including: 

• The value of your home and its rebuild cost 
• The value of your belongings 
• Your location and local risk factors (e.g. flood zones) 
• The level of cover and any optional extras (like accidental damage or personal possessions cover) 

Combining buildings and contents insurance into a single policy often brings the overall price down.