1) You own your house but have a mortgage outstanding on it
If you’ve a mortgage on your property your mortgage lender has a big financial interest in your property, they will make it a condition of the mortgage that your home has adequate home buildings cover (building insurance covers the structure, including fixtures like your bath). So, for example, if your building was uninsured and the house burned down, they would lose their money too.
The condition will be mentioned in your terms and conditions of your mortgage agreement and will have been discussed with you when you took out the mortgage.
Unlike buildings insurance cover, there is no requirement to take out home contents insurance (Imagine you could turn your house upside down and shake it about a bit. Contents insurance covers everything that ends up on the floor – we’re talking furniture, jewellery, clothes and fridge freezers). If times are hard, or you’re looking to save money, it might be tempting to consider forgoing protection.
Think hard though, if the worst ever happened you would lose everything and have no compensation whatsoever. Is it really worth the risk?