Contents & stock insurance

Getting peace of mind for your belongings and business stock

Contents and stock insurance protects the things you rely on every day. For most households, contents means furniture, electronics, clothing, jewellery and similar personal possessions. For sole traders and small businesses, stock means items held for sale and raw materials kept at home, in a shop, or at a unit. The goal is simple - if theft, fire, escape of water or a storm damages what you own, you are not left covering the full cost alone.

Across the UK, insurers are paying significant sums to help people recover after claims. Property claims reached around £1.6 billion in a single quarter of 2025, reflecting the real value of cover when things go wrong. At the same time, the market is balancing inflation in repair costs and volatile weather. Weather-related home damage hit record levels in 2024, which helps explain why some premiums have risen. Understanding these pressures can help you judge value and choose cover that fits your budget.

For households, contents-only cover averaged roughly £129 in 2025, with costs varying by location, claims history and the value you insure. Bundling buildings and contents can be cheaper overall for homeowners than buying separately. Renters, who often skip contents insurance, can be especially exposed to financial shocks after fire, theft or leaks. Increasing uptake among renters would improve protection across the UK, but only if policies feel affordable and claims are straightforward.

This guide walks you through what is typically covered, how claims work, how to avoid underinsurance, and the choices available if you also hold business stock. We will keep it practical, honest and free of jargon so you can make confident decisions.

Insurance can protect your finances - but only when sums insured and exclusions match your real risks.

What is covered in practice

Most policies cover loss or damage to personal possessions caused by insured risks such as theft, fire, explosion, storm, flood and escape of water. Accidental damage is sometimes included at higher cover levels, or available as an add-on. For traders, stock insurance covers goods you hold for sale against similar perils, whether kept at a shop, storage unit or sometimes at home, depending on your policy terms.

There are limits and exclusions. Wear and tear, mechanical breakdown and deliberate damage are not covered. High-value items like bicycles, laptops or jewellery may have single-item limits. If you take valuables outside the home, personal possessions cover may be required. For business stock, some policies exclude damage from faulty manufacture or gradual deterioration, and may require specific security measures at the premises.

Claims are usually straightforward. You notify the insurer as soon as it is safe to do so, provide proof of ownership or value, and share incident details such as a crime reference number for theft. The insurer then assesses the loss and either arranges repair or replacement, or pays a cash settlement subject to your policy excess. If you have underinsured by declaring too low a total value, the insurer may apply an average clause that reduces the payout, which is why accurate valuations matter.

Simple example: a burst pipe damages a sofa and television. Contents cover would contribute to repair or replacement after your excess is paid. If you run a home-based craft business and floodwater destroys your finished goods, stock cover would address your business items up to the stock sum insured.

Who benefits most

Contents insurance is useful for anyone who would struggle to replace possessions after a loss. Renters, students, and first-time buyers often gain meaningful protection for a modest annual cost. Homeowners who already hold buildings insurance should consider bundling contents to reduce gaps and potentially save money. Sole traders and small retailers with physical goods benefit from separate stock cover that reflects seasonal peaks and higher values.

It may be less necessary if your possessions are minimal, low value, or easily replaced without financial strain. If your landlord already insures the building, remember that does not cover your belongings or business stock. For some micro businesses with only small amounts of stock, extending a home contents policy with a business add-on could be enough, but larger or higher-risk operations usually need a dedicated commercial policy.

Cover choices at a glance

1. Basic contents cover

   • Protects against core risks like fire, theft, escape of water and storm.
   • Lower limits for valuables and single items.
   • Typically excludes accidental damage and cover away from home.

2. Standard contents cover

   • Includes a wider set of perils and higher overall limits.
   • Optional personal possessions cover for items taken outside the home.
   • May include some accidental damage for fixed items like glass or sanitary ware.

3. Comprehensive contents cover

   • Higher limits and broader accidental damage across most possessions.
   • Enhanced cover for bicycles, gadgets and jewellery, often with specified item listings.
   • Portable tech and travel cover may be available.

4. Stock insurance - home-based trader add-on

   • Adds a stock sum insured to a home policy for small amounts of business goods.
   • Subject to security conditions and business use declarations.
   • Suitable for low-risk, low-value stock stored at home.

5. Stock insurance - standalone commercial policy

   • Designed for shops, units or larger stock values.
   • Seasonal uplift options to match peak trading periods.
   • Can add goods in transit, business interruption and public liability.

6. Optional add-ons to consider

   • Accidental damage for contents.
   • Personal possessions outside the home.
   • Bicycle and gadget extensions.
   • Home emergency for sudden failures like boilers.
   • Legal expenses for disputes and consumer rights issues.

Review single-item limits and specify high-value items to avoid payout reductions.

What it costs and why prices vary

Typical prices are influenced by sum insured, location and claims history. The UK average for contents-only cover was around £129 in 2025. Combined policies can be competitive, with some data showing lower totals when buying buildings and contents together. Prices can fluctuate through the year and often reflect wider claims trends.

Premiums rose in 2025 on average, reflecting higher claims costs, but competition still helps keep rates in check.

Who can apply and what insurers expect

Most UK residents aged 18 or over can apply for contents insurance. You will usually be asked about your address, property type, security features, and an accurate total for your contents value. If you hold business stock, disclose the nature of the goods, where they are stored, and the maximum value, including any seasonal peaks. Insurers may ask for valuations or receipts for high-value items and may require specific locks or alarms for certain stock categories.

Common reasons for decline include undisclosed criminal convictions, past fraud, unsafe property conditions, high unoccupied periods, or proposed stock types that are flammable or high theft risk without adequate security. Being accurate and transparent prevents problems at claim time. If you are unsure whether an item counts as contents or stock, ask the insurer before you buy.

From quote to claim in simple steps

1. Gather a full contents list and estimate realistic replacement values.
2. Decide if you need stock cover, and note peak stock amounts.
3. Get multiple quotes, comparing limits, excesses and key exclusions carefully.
4. Choose a cover level and add-ons that match your specific risks.
5. Disclose all relevant details, including high-value items and security measures.
6. Keep documents, valuations and serial numbers safely stored and accessible.
7. If something happens, report it quickly and follow the insurer instructions.
8. Provide evidence for assessment so repairs or replacements can proceed smoothly.

Weighing up the trade-offs

Accurate valuations and clear disclosure are the easiest ways to protect claim outcomes.

Key checks before you commit

Read the policy schedule and wording closely. Note your total sum insured and any inner limits for valuables, bicycles and gadgets. Check the excess for standard claims and for escape of water, which can be higher. Understand exclusions relating to wear and tear, unoccupied periods and security requirements. Confirm whether accidental damage and personal possessions are included or optional. Watch for introductory discounts that change at renewal, and set a reminder to shop around annually. Keep receipts, serial numbers and valuations ready, as these speed up claim handling and help avoid disputes.

Related covers worth considering

1. Buildings insurance - for homeowners to protect the structure of the property.
2. Business interruption - helps cover lost income after insured damage disrupts trading.
3. Goods in transit - protects stock while it is being transported.
4. Gadget insurance - for high-value mobile tech frequently used outside the home.
5. Bicycle insurance - for riders with bikes that exceed home policy single-item limits.
6. Home emergency - for sudden issues like boiler failure or lost keys.

Frequently asked questions

Q: How much contents cover do I need? A: Add up the cost to replace everything at today’s prices. Go room by room and include clothing, furniture and electronics. Update the total yearly. If you hold business stock, set a separate stock limit.

Q: Are bicycles and laptops covered outside the home? A: Only if your policy includes personal possessions cover or specific item listings. Check single-item limits and whether theft from unattended vehicles is restricted. You may need to meet lock standards.

Q: Is accidental damage worth it? A: It can be useful for homes with children, pets or frequent visitors. It increases price but widens protection. Review excesses and any exclusions for portable devices or cosmetic-only damage.

Q: Do renters need contents insurance? A: Landlord buildings insurance will not cover your belongings. Contents cover can be relatively low cost and provides a safety net after theft, leaks or fire, which are common causes of claims.

Q: How often should I review my sums insured? A: At least annually, and after major purchases or life events. Prices change, and underinsurance can reduce payouts. Keep receipts and valuations for high-value items to support any future claim.

Q: Is bundling buildings and contents cheaper? A: It often can be. Combined policies are frequently priced competitively and may be cheaper than two separate policies. Always compare both approaches to see which offers better overall value.

What to do next

Take ten minutes to total up your belongings and any stock you hold. Compare a few quotes on like-for-like limits, excesses and add-ons. If you need help, speak to a regulated adviser. You are in control - choose the level of protection that fits your budget and the way you live.

Important information

This guide provides general information, not personal financial advice. Policy terms, exclusions and prices vary by insurer. Always read the full policy wording and schedule, and confirm details with your insurer before you buy.