Building insurance covers the structure — walls, roof, floors, fitted kitchens, plumbing and electrics — against fire, storms, flooding and other insured perils. Contents insurance covers the movable things inside — furniture, electronics, stock, personal effects. They are separate covers, often bought together, and the split matters most in rental property, where the landlord insures the building and the tenant insures their own contents.
What building insurance covers
The fabric of the property and everything permanently attached to it: the structure itself, boundary walls, fitted units, water systems and, on block policies, common areas and shared services. It's insured at reinstatement value — the cost of rebuilding today. See our apartment building insurance page for how this works across a whole block.
What contents insurance covers
Everything you could take with you if you moved: furniture, appliances, electronics, clothing — and for businesses, stock and equipment. Contents are insured at replacement value, and portable high-value items can be extended under all-risk cover for loss outside the premises.
Who needs which
- Homeowner-occupiers need both, usually as one combined policy.
- Landlords need building cover plus their own fixtures — see landlord insurance. Tenants' belongings are never covered by the landlord's policy.
- Tenants need contents-only cover — the building is the landlord's risk.
- Businesses typically combine building (if owned), contents, stock and fire & burglary under one package.
The common gap
The classic error is a landlord assuming the building policy protects tenants' property, and tenants assuming the same — until a burst pipe ruins both the ceiling (building claim) and the tenant's furniture (nobody's claim, unless the tenant carried contents cover). Five minutes with a broker closes the gap; start with a property insurance review.
