If you have a mortgage, your lender will insist that you have buildings insurance. However, we would strongly advise that you take out contents insurance whether you are required to have buildings cover or not i.e. if you are a tenant, so that you are protected.
Buildings insurance covers actual damage to your home, such as the roof, walls, floors, ceilings and foundations. On a purchase, property insurance must be in place on exchange of contracts, so even before you move in, as you are at that point legally bound to the property. The rebuild cost of your home is the cost to totally rebuild your home from new. As example of this would be if your house burnt down then the cost would have to cover clearance of the plot and a complete new house to be built.
Accidental Damage cover would include the buildings permanent fixtures and fittings for example the bathroom suite, toilet and decoration.
Some lenders will charge you for not taking out their insurance, if the property has had subsidence or flooding then you may only be able to use your mortgage lender for building's insurance as this is seen as high risk to insurance companies.
The property may generally only be used for residential purposes and have to be occupied by you, it will not cover a rented property.
Home insurance will be more expensive if you claim and specialise insurance may be required for unusual constructions types such as a thatched property etc.
Contents Insurance, as the name implies, covers all contents of the home and personal possessions but beware, there are restrictions. Expensive items over a certain amount may increase the premiums or even be excluded. There are restrictions and extra costs for items that are taken from the home or are more vulnerable, for example possessions in your garden shed.
Accidental Damage cover is available which would cover, for example, breaking a television screen by accident.