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Buildings insurance covers the cost to repair damage to the structure of your property. Most mortgage lenders will insist you have buildings insurance from the date of exchange of contracts until either you sell the property or repay the mortgage.
Contents insurance covers the cost of replacing household items if they’re stolen or damaged by an event like fire or flood. Since a contents policy covers your possessions, it is entirely your decision whether to take one out or not.
Life insurance will pay out a sum of money if you die, and sometimes if you are seriously ill or injured. This can be used to pay off a debt like a mortgage, rather than leaving your dependents (children) to inherit the debt.
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