What is home contents insurance?
Home contents insurance covers against loss, theft or damage to personal and home possessions.
You don’t have to take out home contents insurance, but it’s a good idea to consider doing so because if any of your contents get lost, stolen or damaged, you will have to pay to replace them.
Most policies carry an excess. This means you won’t be covered for the first few pounds of a claim. A typical excess may be between £50 and £100.
Events a contents insurance policy can cover
A contents policy should cover damage caused by fire, flooding, storms, and theft as basic coverage of the policy price. You may be asked to pay an additional amount to cover things like accidental loss or damage to possessions caused by children or pets, cover for items taken outside of the home, freezer contents and single items such as mobile phones and laptops.
Some policies can also cover death or injury.
Personal possession a contents insurance policy can cover
Contents insurance covers your possessions and those of family members living with you. It may not cover the possessions of anyone staying with you.
Before taking out a policy, it’s important to consider how much cover is needed based on the cost of replacing all personal possessions, including carpets or flooring and the contents of a garage or shed.
Most policies offer new for old cover. This means the policy will pay out for the full replacement cost of lost, stolen or damaged items. However, some policies will only offer the amount that items are worth when a claim is made.
It is important to check with the policy provider exactly what’s included and whether the policy carries an upper limit on what is paid.
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