What Is the Difference Between Building and Contents Insurance?

Building insurance covers the physical structure of your property — walls, roof, floors, and permanent fixtures — against damage or destruction. Contents insurance covers your personal possessions inside the property, such as furniture, appliances, clothing, and electronics.

Key Points

Building: covers the structure, fixtures, and permanent fittings
Contents: covers moveable possessions you would take if you moved out
Homeowners need both; renters only need contents cover
Body corporate buildings in strata typically have building cover included in levies
Underinsuring either can leave you significantly out of pocket after a major loss

What Counts as a Building vs a Contents Item?

A useful rule of thumb: if you would take it with you when you move, it's contents. If it stays with the house, it's building. Fixed shelving, kitchen benchtops, and bathroom tiles are building items. Your fridge, sofa, and television are contents. Carpets are usually contents, but floor tiles are building. Dispute cases like this matter at claim time, so check your PDS for your insurer's definitions.

Do I Need Building Insurance If I Own a Unit or Apartment?

In a strata-titled property, the body corporate is required to hold building insurance for the common areas and the external structure. As a unit owner, you typically only need contents insurance for your own belongings plus any internal fixtures and fittings you are responsible for under your strata scheme. Check your body corporate's insurance certificate of currency to understand what is already covered.

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Written by CoverMy Editorial Team

Last reviewed: 17 March 2026

Category: Home Insurance

What Is the Difference Between Building and Contents Insurance?

Key Points

What Counts as a Building vs a Contents Item?

Do I Need Building Insurance If I Own a Unit or Apartment?

Ready to get covered?

Related Questions

What Is the Difference Between Building and Contents Insurance?

Key Points

What Counts as a Building vs a Contents Item?

Do I Need Building Insurance If I Own a Unit or Apartment?

Ready to get covered?

Related Questions