Home insurance (contents)

Contents cover in plain English

Contents insurance protects the things you own at home against risks like theft, fire and water damage. It does not insure the structure of the building. Think furniture, electronics, clothes, jewellery and everyday items you would take with you if you moved. For many households, it is the most affordable way to guard against bills that would be difficult to pay out of pocket.

Premiums have been rising. Home insurance costs have climbed due to inflation, higher labour and materials, and a surge in claim payouts. The average contents policy remains comparatively low at around £78 a year, and it is often cheaper when bought with buildings insurance. London and the South East can be pricier, reflecting local claim trends and costs. This guide explains what contents insurance includes, where the limits sit, and how to choose cover that fits your budget without paying for features you do not need.

Water damage is a common cause of claims, especially escape of water from burst pipes or faulty appliances. Insurers are paying out significant sums for property claims, which underlines the value of having the right protection in place. We will show you the features to focus on, how excesses work, and the practical steps to make a claim if something goes wrong.

Our aim is simple - clear facts, no jargon, and realistic expectations. Contents insurance cannot stop accidents, but it can soften the financial impact. By understanding cover levels and exclusions before you buy, you can feel confident your policy will perform when it matters.

Insurance can only protect what is listed and within the limits. Check them carefully.

What is covered and how it works day to day

A typical contents policy covers your belongings inside the home against theft, fire, storms and water damage. It usually includes furniture, appliances, clothing, tech and soft furnishings. There is often a single item limit for valuables like watches or artwork. If an item exceeds that limit, you may need to specify it separately with proof of value. Some policies include, or offer as an add-on, accidental damage for mishaps like a cracked TV screen.

Cover can extend outside the home if you choose personal possessions cover. This protects items like phones, laptops and bicycles when you are out and about, often worldwide up to a time limit. Policies normally exclude wear and tear, mechanical breakdown and cosmetic damage. If you leave doors or windows unsecured, theft claims may be declined. High-value or unusual items may need specialist cover, especially in older or listed homes.

If you claim, you will pay the agreed excess and the insurer will repair or replace items up to the policy limits. New-for-old settlement replaces items with similar new ones rather than applying depreciation, but this depends on your policy terms. Escape of water is a leading cause of claims, so insurers may ask about your plumbing and past leak history. Keep receipts or photos to evidence ownership, and tell your insurer promptly if something significant changes, such as a home renovation or a new high-value purchase.

Who benefits most

Contents insurance is particularly useful for renters, homeowners without buildings cover bundled, flat sharers and students who own laptops, phones and bikes. If you live in an area with higher theft or water damage risk, the protection can be especially valuable. Households with children or pets may also prefer accidental damage cover for everyday mishaps.

Those with high-value collections or jewellery should consider specifying items or using a specialist policy to avoid underinsurance. If you have very few possessions, or your accommodation already includes cover for your belongings, you may decide basic protection is sufficient or unnecessary. Landlords insure the building, not your contents, so tenants should not rely on a landlord policy for personal belongings. The right choice balances risk, budget and the true cost of replacing what you own.

Choosing a level of protection

1. Essential contents

   • Covers theft, fire, storm and escape of water for everyday items. Lower overall and single item limits. Suits smaller households and tight budgets. Accidental damage usually not included.

2. Standard contents

   • Wider limits with optional accidental damage. May include alternative accommodation if your home is uninhabitable after an insured event. Good balance for most homes.

3. Enhanced contents

   • Higher limits, better single item caps, and optional personal possessions cover outside the home. Useful for homes with multiple gadgets, bicycles or occasional travel.

4. High-value or bespoke contents

   • Tailored limits that can exceed £150,000 with higher cash limits and cover for valuables at and away from home. Appropriate for high-value properties or collections to prevent underinsurance.

5. Popular add-ons

   • Accidental damage for contents like TVs and carpets.
   • Personal possessions away from home for phones, laptops and jewellery.
   • Bicycle cover with specified values and security requirements.
   • Home emergency for urgent call-outs like burst pipes or boiler issues.
   • Legal expenses for disputes such as consumer or property issues.

Start by listing key items and checking each against single item limits before choosing add-ons.

What it costs and why prices vary

Rising construction and repair costs, extreme weather and a high volume of claims have pushed premiums up across the UK. Despite this, contents policies remain comparatively affordable, and bundling with buildings cover can simplify claims and save money.

Who can apply and what insurers check

Most UK residents in houses or flats can apply for contents insurance. Insurers will ask for your address, property type, who lives there, your claims history, security features and the total value of your belongings. They may request valuations for high-value items, proof of purchase, and details of any recent renovations or changes to occupancy.

Applications can be declined if there is a history of frequent claims, significant non-disclosure, ongoing subsidence at the property, unoccupied periods beyond the policy limit, or if the home is used in ways that increase risk without appropriate cover. Be accurate with sums insured and item values. Underestimating to lower the premium can leave you underinsured and reduce claim payouts.

From quote to claim in simple steps

1. Gather item values and photos, then estimate your total contents sum insured.
2. Get quotes for contents only and bundled with buildings, compare cover limits.
3. Choose a level of cover and add-ons that match your real risks.
4. Check single item limits and specify valuables with accurate valuations.
5. Confirm excess amounts, settlement type and any security requirements.
6. Buy the policy and store documents, receipts and serial numbers safely.
7. If something happens, contact your insurer promptly and follow claim guidance.
8. Provide evidence, pay the excess, and track repairs or replacements to completion.

Clear benefits and honest drawbacks

The best policy is the one that clearly matches your belongings, risks and budget.

Check these details before you buy

Look closely at excesses, including separate escape of water and theft excesses if they apply. Review policy limits for total contents and single items, and confirm whether settlement is new-for-old. Scan the exclusions for unattended items, unforced entry and wear and tear. Ask about any waiting periods before certain covers start. Note how renewal pricing works and whether introductory discounts change after the first year. Finally, confirm what documents you will need for claims, such as receipts, valuations and photographic evidence. Taking 10 minutes now can prevent delays or disappointment later.

Related cover that might fit better

1. Buildings insurance - for the structure of your home. Essential for freeholders and usually required by mortgage lenders.
2. Tenants liability - protects you if you accidentally damage your landlord’s fixtures and fittings.
3. Student contents - tailored limits and theft cover for shared accommodation and halls.
4. High net worth home - bespoke cover with higher limits for valuables and global protection.
5. Gadget insurance - if you only want portable tech covered outside the home.

FAQs

Q: Is contents insurance compulsory in the UK? A: No, it is not legally required. Mortgage lenders usually require buildings insurance, not contents. However, contents cover is often sensible because replacing belongings after theft or a leak can be expensive.

Q: How do I work out my sum insured? A: Walk room to room and total the replacement value of everything you would take if you moved. Include clothing, tech, furniture and soft furnishings. Use current prices, not what you originally paid.

Q: Are phones and laptops covered outside the home? A: Only if your policy includes personal possessions cover. Limits and excesses apply, and there may be conditions about unattended items or security. Check international travel limits and time restrictions.

Q: What is escape of water cover? A: It covers damage from leaks or bursts, for example from pipes, tanks or appliances. It does not cover maintenance or wear and tear. Promptly fixing small leaks can reduce risk and protect premiums.

Q: Do students need separate contents insurance? A: Sometimes halls provide basic cover with low limits and high excesses. Check what is included and consider topping up for laptops or bikes. In shared houses, a standard contents policy may be more appropriate.

Q: How do excesses work? A: The excess is the amount you pay towards a claim. Higher excesses can reduce your premium, but make sure you could comfortably pay the excess if you needed to claim.

Q: Will making a claim raise my premium? A: Claims can affect future premiums and your ability to switch. The impact depends on the type and frequency of claims. Weigh the claim value after excess against potential future costs.

What to do next

Take stock of what you own, estimate a realistic sum insured and decide whether you need add-ons like accidental damage or personal possessions. Compare a few quotes, including bundled options if you also need buildings cover. Read the policy wording and endorsements before you buy so you know exactly what is covered. You are in control - choose the cover that genuinely fits your needs.

Important note

This guide provides general information, not personal financial advice. Policy features, limits and exclusions vary by insurer. Always read the policy documents and key facts, and confirm details with your insurer before you buy or make a claim.