What insurance do I need when buying a house?
Buildings insurance is the time-sensitive one, because responsibility can start at exchange contracts. Contents insurance protects your belongings and often starts at completion or move-in. High value home buyers may also need higher cover limits for items like fine art, jewellery, and antiques. Other insurance can protect people and payments, not the buildings themselves
What is home insurance when you're buying?
Home insurance is a broad label people use for buildings insurance, contents insurance, or a combined buildings and contents insurance policy. It's insurance designed to protect you financially if something sudden and unexpected happens to your home or what's inside it.
The key milestones (offer, exchange, completion) decide when you're responsible, when a lender may want proof, and when you need cover for belongings. First time buyers often research this timeline carefully to avoid gaps in protection.
Which insurance is compulsory when buying a house?
In the UK market, "compulsory" usually means "required by a contract", not a legal requirement. While home insurance isn't legally required, if you're buying with a mortgage, buildings insurance is commonly required by the lender. Some mortgage providers will ask for evidence of cover before funds are released.
Contents insurance is different. There's typically no-one forcing buyers to insure their belongings, though many buyers describe it as advisable given that replacing belongings after a claim is expensive.
Two quick definitions:
- Buildings insurance: covers the structure, fixtures, and fittings, as well as garages and outside structures.
- Contents insurance: coverage for belongings inside the property, sometimes with optional personal possessions coverage outside the home.
When does responsibility start: exchange contracts to completion?
In England and Wales, the purchase becomes binding at exchange of contracts, not completion. In Scotland, the contract is formed when missives are concluded, with handover on the date of entry. Your solicitor will confirm when you become responsible for insuring the property
If a fire, storm, or escape of water event happens in the gap, it can create a messy situation if cover isn't lined up to the correct date.
What buildings insurance usually covers (and the gaps to watch)
Buildings insurance covers the cost of repairing or rebuilding the buildings after insured damage caused by sudden events. That usually includes the main structure, permanent fixtures and fittings, and often garages, sheds, and fences.
Typical insured events include fire, storm, flood, and theft-related damage. What it doesn't cover: wear and tear, gradual deterioration, and poor maintenance are commonly excluded. Insurers can apply restrictions if a home is unoccupied for an extended period.
Practical example
If you exchange contracts, then a storm tears tiles off the roof before you complete, the buyer can still be obliged to complete the purchase. Buildings insurance may respond to that repair work, subject to terms and exclusions.
What contents insurance covers (and how valuables are treated)
Contents insurance is about belongings: furniture, clothing, electronics, and the things that make a property feel like home. It can help pay to replace items after insured events such as theft or accidental damage. The benefit is financial protection if the wrong thing happens, whether you live in a house or a flat.
Most insurers cap unspecified items at £1,000 to £1,500. rivr covers individual items up to £25,000 without separate declaration. Personal possessions cover can extend protection to items you take outside the home, but it's not automatic everywhere.
Theft rules can be strict. Items left unattended in vehicles may not be covered unless locked and concealed. Theft from an unoccupied home is excluded.
Other insurance buyers often consider (beyond the property)
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Once a mortgage is in play, many buyers look at insurance that protects costs and income, not just the buildings.
1) Protect the purchase costs
Home Buyers Protection Insurance (sometimes called gazumping insurance) covers certain house purchase expenses if a sale falls through for specific reasons. Depending on the provider, it may cover conveyancing fees, a survey, and some mortgage valuation fees.
rivr doesn't arrange Home Buyers Protection Insurance. This information is provided for educational purposes only.
2) Protect your ability to pay
Income protection insurance pays a portion of your earnings if illness or injury stops you working. Self-employed buyers often review this when budgeting for mortgage commitments, and it can suit couples planning future commitments together.
3) Protect against major health shocks
Critical illness cover typically pays a lump sum on diagnosis of specified illness, subject to definitions and exclusions. Some buyers view this as a way to protect plans with a partner if serious illness affects the household.
Home insurance often includes legal expenses and liability cover, which can help if there's a dispute or someone is injured on your property, subject to terms.
rivr does not arrange income protection or critical illness cover. This information is for educational purposes only. Speak to a qualified financial adviser for personal recommendations on protection insurance.
What affects cost and how buyers compare policies?
Insurance cost usually comes down to risk and rebuilding. Insurers look at property type, location, construction, security, claims history, and whether the home is unusual (older buildings, listed homes, or non-standard materials can push cost up).
The age of a property and its construction method can influence the price significantly. Rising construction costs and material shortages have also been a factor in premiums.
A big hidden issue is underinsurance. If rebuilding costs are underestimated, payouts can be reduced under average clauses. According to RebuildCostASSESMENT.com, over 76% of UK homes may be underinsured on rebuild values.
When buyers compare quotes and shop around, look beyond "cheaper". Check excess levels, what events are included, and what's excluded. Research what different policies offer, and check the policy page for details that may not appear in the headline price.
What changes when you sell, move out, or rent the property?
The insurance story doesn't end at completion. During a house sale, the seller is typically responsible until the sale is complete. If you sell and move out early, unoccupancy rules can affect cover.
If a mortgage lender repossesses a property, the borrower can still be responsible for insuring it until it is sold. And if you become a landlord, the risk profile changes.
The practical aim is continuity: aligning the start and end date of policies so there's no gap.
How rivr approaches cover for high value homes
rivr home insurance is designed for high value properties, with features that suit buyers who need higher limits and worldwide cover. Once you've exchanged contracts, we can cover your property on an all risks basis for sudden and unforeseen physical loss or damage.
- Your contents are covered worldwide. Fine art, antiques, jewellery and watches are covered up to £25,000 per item without separate declaration, provided they meet eligibility criteria.
- Home emergency cover is included, up to £2,500 per claim (your boiler must be serviced annually in line with manufacturer's instructions to claim for breakdown).
- Family legal protection is included up to £100,000 per claim if you need to fund a dispute, subject to policy terms and prospects of success.
Contact our team to find out mor, or get an instant quote.
All cover is subject to policy exclusions. Check the policy wording before you buy.
House-buying insurance checklist (quick recap)
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Frequently asked questions
A mortgage lender will often require buildings insurance before the mortgage completes. Contents insurance is usually optional, but it can protect belongings from day one in the new place.
No. It's commonly required by a mortgage contract, which is why buyers hear it described as "compulsory". If you buy without a loan, there may be no lender forcing it, but the risk of large costs sits with the owner.
Buildings insurance often starts on the exchange date because exchange contracts often make the buyer responsible even before they complete. Contents insurance is often set to start at completion or when belongings move in.
Home Buyers Protection Insurance can cover certain expenses you've already paid during purchasing if the purchase doesn't go ahead for specified reasons. That can include a survey, some solicitor fees, and mortgage valuation costs.
Income protection insurance pays a portion of your earnings if illness or injury stops you working. Self-employed buyers often review this when budgeting for mortgage commitments. It's separate from home insurance and has waiting periods, exclusions, and definitions that differ by provider.
Included when Section 4 Home Emergency appears on your schedule. You get a 24 to 7 helpline and a vetted tradesperson for urgent issues like no heating or hot water, serious leaks, internal electrics, locks or glazing that cannot secure, drains, pests, or roof damage exposing the interior.
We cover call out, parts and labour up to the limit shown on your schedule; any excess, waiting period, and what passes to buildings or contents apply as stated in your documents.
The general rule is that you may need high-value home insurance if you meet any of the following criteria:
- The rebuild value of your home is over £1 million
- Your general contents are worth over £100,000
- You have valuable items that together are worth over £30,000
