Guide to Contents Insurance

Contents insurance, sometimes referred to as possessions insurance, is designed to provide protection against financial losses relating to the contents of your home. In the UK, this is not a compulsory element of home insurance in the way that buildings insurance is when the property is purchased with a mortgage agreement. However, it's a wise purchase for all homeowners. Most of us choose to buy contents insurance as part of a combined home insurance policy.

What does contents insurance cover?

Contents insurance is designed to cover the homeowner against damage of their home contents as well as financial losses resulting from theft or burglary. Items covered by a contents insurance policy are usually classified as any item which is not permanently fixed to the structure of the home.

Contents insurance policies tend to be provided with a number of exclusions so be sure to check the small print of any contents insurance policy before committing to a purchase. Common exclusions of contents insurance relate to the value of any individual item and whether your contents insurance cover extends to portable items if they're stolen when taken away from the home e.g. mobile phones and jewellery.

Ensure that your high risk contents are properly covered. These are likely to be portable electrical goods which are usually targeted by thieves for a combination of their value, ease of re-sale and portability. Some contents insurance policies require additional cover for computer insurance needs or electrical items. Look out for this in any contents insurance policy documents.

Contents insurance and single value items

If your home contents includes rare or expensive items, such as antiques and jewellery, it is wise to seek an expert valuation. This will help when it comes to arranging your contents insurance as you'll need to put forward the total value of your home contents. You may also be required to show proof of their value when it comes to making a contents insurance claim. So always keep valuations and receipts in a safe place.

Some of your contents may need to be insured separately or require additional cover. This is usually the case when the single value of one of your possessions exceeds the value permitted within the contents insurance policy. However, there are a number of high value home insurance providers who specialise in contents insurance policies for homes which contain a high value of items. A good home insurance comparison tool will point you in the right direction.