What is home contents insurance?

What does home contents insurance cover?  

Home contents insurance covers the loss of or damage to the contents of the insured’s home.  This includes almost everything a person would take with them if they were to move, e.g. furniture, electrical goods, clothing and personal effects.  It can also cover certain items when they are taken outside the home, e.g. cameras and jewellery.  

Different policies offer different levels of cover, but generally they insure against theft and fire.  Many will also offer cover for accidental damage.  

What isn't covered?  

Policies will normally limit the maximum amount of compensation the insurer will pay out on any one claim or against any one item; limits may also be applied to single articles.    Cover may be affected or cancelled if a property is left empty for a long period of time.  

Damage to the building itself is also not covered; this needs to be covered separately by buildings insurance.  It is the landlord's responsibility to buy buildings insurance.
 
What kind of events are covered?  

Most policies will cover loss or damage caused by:  

Theft or attempted theft

Fire, explosion, lightning, or earthquake

Escape of water from tanks or pipes

Storm and flood.  

Keeping costs down (This does not apply to tenants contents insurance policies)  

Many insurers will offer discounts for certain security measures, such as a burglar alarm, window locks or membership of a Neighbourhood Watch scheme.  

Most standard policies have an excess charge which means the insured must pay the first part of any claim.  Agreeing higher excesses can reduce the cost of cover.
 
Level of cover

Some contents insurance policies offer new for old. This means insurers will  replace old damaged appliances and possessions with new ones following a claim.