When applying for a mortgage, lenders will typically insist that you have the appropriate level of home insurance. In such contexts, however, it’s crucial to note that home insurance usually means buildings insurance, which is a policy that covers the structure of your home, not the contents within.
Mortgage lenders make buildings insurance mandatory to protect their investment, and in some cases, they’ll specify insurers you can use from their own list. Contents insurance, on the other hand, is a different kind of policy that focuses on the possessions kept inside. However, contents insurance is not mandatory and isn’t required by mortgage lenders, but this doesn’t mean that it’s not worth having.