What is contents insurance?

Contents insurance protects your personal belongings inside your home. This includes things like your furniture, clothes, electronics, jewellery and other valuables. If your stuff gets damaged, lost, or stolen because of fire, flood, burglary or accidental damage, your policy can help cover the cost to replace or repair it.

Whilst not a legal requirement, it’s so important to have whether you own or rent your home. After all, if disaster were to strike, replacing everything you’ve worked hard to accumulate can be very expensive and incredibly stressful.

Even with the best will in the world, accidents happen, from a burst pipe ruining your sofa to a kitchen fire damaging your gadgets. Contents insurance gives you peace of mind that your belongings are covered when life throws a curveball.

Why do I need contents insurance?

If your belongings are stolen, damaged or destroyed, the costs to replace them could add up quickly. Contents insurance covers the things that make your house feel like home. If you rent, your landlord’s insurance won’t cover your stuff. Contents insurance means you’re not left out of pocket if the worst happens.

It’s also worth checking if your contents policy includes accidental damage, like spills or knocks. These small accidents can add up to big repair bills.

Here’s why contents insurance really pays off:

  • Protect your valuables: Covers replacement costs for furniture, gadgets, clothes and more.

  • Financial safety net: Avoid huge out-of-pocket expenses after theft or damage.

  • Cover accidental mishaps: Spill a drink or break something? There’s cover for that.

  • Peace of mind for renters: Your belongings are protected even if you don’t own the building.

  • Help with temporary living costs: Some policies cover alternative accommodation if needed.

  • Optional cover for valuables on the go: Protect jewellery and expensive items you take outside the home.

Remember though, contents insurance doesn’t protect your actual home should disaster strike. For that, you’ll need buildings insurance. If you want to keep things simple, a single policy that combines both buildings and contents insurance is a way to sort all your cover in one easy-to-manage policy - and it can be cheaper than separate policies.

What does contents insurance cover?

Contents insurance is there to help cover the cost of replacing or repairing your belongings if something unexpected happens – like a burst pipe, a house fire, storm or floods, or even a break-in. But what exactly counts as ‘contents’? It's basically all the stuff you'd take with you if you moved house. Here’s what may be included, depending on the insurer and policy you choose:

  • New-for-old replacements: If something can’t be repaired, many policies will replace it with a brand-new equivalent, whether it’s your sofa, TV or shed contents.

  • Working from home?: Cover often includes office kit like computers, printers and photocopiers – ideal if you're remote working.

  • Cash in the house: Some policies cover cash kept at home, up to a specific maximum amount.

  • Things in the garden: Garden furniture, tools, lawnmowers… these are often covered too, not just indoor items.

  • Lost keys? No problem: Many policies include lock and key replacement if yours are lost or stolen.

  • Freezer breakdowns: If a power cut ruins your frozen food, you may be able to claim for the contents.

  • New-for-old replacements: If something can’t be repaired, many policies will replace it with a brand-new equivalent, whether it’s your sofa, TV or shed contents.

As well as the standard cover, contents insurance policies usually let you pick a few extras, so you can tailor your policy to fit your life. Here are some common add-ons you might want to consider:

  • Home emergency cover: Helps with the cost of unexpected callouts, like when the boiler gives up or a pipe bursts.

  • Accidental damage cover: For those ‘oops’ moments, whether it’s knocking red wine over your cream sofa or scorching the carpet with the iron.

  • Family legal protection: Covers legal costs if you get into a dispute, maybe with a tradesperson over poor work, or even a noisy neighbour.

  • Personal possessions cover: Extends your cover to items you take with you, like phones, watches or laptops, so you’re protected even when you’re out and about.

What’s included can vary depending on the insurer and the level of cover you choose. That’s why it’s always worth comparing policies carefully to make sure you're getting the protection that fits your lifestyle.

What isn’t covered?

No insurance can cover absolutely everything, so it’s important to check what’s excluded from your policy. Common things typically not covered include in contents insurance:

  • General wear and tear.

  • Damage caused by cleaning, renovating, repairing or restoring an item.

  • Damage caused by wet rot, dry rot, frost, vermin or woodworm.

  • Problems resulting from poor workmanship or design faults.

  • Any events or damage that happened before your policy started, or situations you knew about beforehand.

  • Loss, damage, or liability caused by deliberate or criminal actions by you or anyone living with you.

  • Damage caused by domestic animals, such as chewing, scratching, tearing or fouling.

Make sure you read the full policy details carefully to understand all the exclusions.

Can I include accidental damage or personal belongings outside my home?

Yes, many contents insurance policies offer optional accidental damage cover. This means if you accidentally drop your phone or damage your bike, this could be covered, giving you extra peace of mind for those everyday mishaps.

Personal possessions cover is another handy add-on. It protects your belongings - up to a stated maximum value - when you take them outside the home, like your laptop, phone or jewellery. So, if they’re lost, stolen, or damaged while you’re out and about, you can still be covered.

Keep in mind, these extras aren’t always included automatically. You may need to add them to your policy, which might increase your premium. It’s a good idea to check what’s included and compare policies to find the best fit for your needs.

How much does contents insurance cost?

According to the Association of British Insurers (ABI), for contents-only cover, the average price paid in Q3 2024 was £138 for the year. But how much contents insurance will cost for you will depend on factors like your postcode, claims history and the level of cover you go for.

Here’s what could influence the cost of your contents insurance:

  • Where you live: Areas with higher crime rates or a history of theft can increase your premium.

  • The type of property: Flats with shared access or houses in high-risk areas may impact the price.

  • Security features: Having things like burglar alarms, door and window locks, or CCTV can sometimes bring the cost down.

  • The value of your belongings: The more you own, and the higher the value of your items, the more it may cost to insure them.

  • Your claims history: If you’ve made claims in the past, it can bump up your premium.

  • Optional extras: Adding cover for extras like personal possessions away from home may increase the cost.

  • Who lives in your home: Your age, who else lives with you, and whether you rent or own can all have an effect.

  • Your excess: Picking a higher voluntary excess – that’s the amount you agree to pay yourself if you make a claim, on top of any fixed excess – can help bring down the cost of your premium.

Remember, it’s always worth shopping around when your renewal comes up. Even small differences in cover or excess can make a big difference to the premium.

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