Contents Insurance

Contents insurance is a type of home protection policy that covers the cost of replacing your personal belongings if they are stolen or damaged. This typically includes furniture, electronic goods, clothes and in some cases ‘fixtures and fittings’ like carpets and curtains.

This guide to contents insurance explains who it’s for, why you might need it, and how to ensure you have the right cover for your specific needs, at a competitive price.

What is contents insurance?

Often sitting alongside buildings insurance as part of a full home insurance policy, contents insurance specifically covers your possessions. When you take out a policy, monthly or annual premiums are paid, to insure a defined list of your belongings. The details of exactly what is or isn’t covered varies by policy, and by provider, which is why it’s important to search the market to find the most suitable plan for your needs.

So long as you have an active insurance policy, you’ll be able to claim the funds to replace (or in some cases repair) broken or stolen items, following an event, accident, or break-in. Usually you will need to make a small payment, (known as an ‘excess’) when you claim, however, there are excess-free contents insurance policies available from some providers.

Most contents insurance policies cover the following items as standard, but it’s important to check your specific policy to be sure:

• Electronics (TVs, laptops, tablets, mobile phones, games consoles etc) and smart

• Furniture (Sofas, beds, wardrobes, dining tables etc)

• Furnishings (Carpets, curtains, rugs and bedding etc)

• Appliances (Fridges, washing machines, microwaves, cookers etc)

• Clothes and personal items (Clothing, footwear, bags, jewellery, watches etc)

Standard policies usually protect your belongings against a set list of events, which are known as ‘insured perils’. These typically include:

• Accidental fire (including smoke or explosions)

• Flood protection (often including storm damage)

• Theft (usually including vandalism or malicious attacks, such as arson)

• Escape of water (water damage from inside the home, not weather. Such as burst pipes)

• Subsidence (structural movement or collapse)

Is it available as a standalone policy?

Yes, many people use contents insurance as a standalone policy, for example, those who do not own the building they live in.

Homeowners can also choose to buy separate buildings and contents insurance rather than combined home insurance if they wish. While it is often more cost-effective to purchase them as a combined policy from a single provider, this allows people the freedom to select the provider that best suits their needs for each scenario.

Who needs standalone contents cover?

If you don’t have legal responsibility for the building you live in, it’s unlikely you’ll need a combined buildings and contents home insurance policy. This could apply to a wide range of circumstances, but usually it is suitable for:

• Tenants: If you’re renting a property, both private and social landlords are legally responsible for the buildings insurance, but your contents are not covered by this. Contents insurance will cover the things you move into your rented home.

Please note: UK landlords can no longer legally force you to take out a specific insurance policy as a condition of your tenancy, but it’s in your best interest to do so

• Leaseholders: If you own a leasehold property (usually a flat or maisonette), the building's insurance is typically arranged by the freeholder. It’s, therefore, pointless to pay for something that you’re contributing to through maintenance fees. However, contents insurance to protect everything inside your home is a good idea

• House sharers: If you live in shared accommodation (HMO property), whether that’s as a student, or you simply share most of your home (usually except your bedroom) with flat mates, you’ll likely want contents insurance. Contents insurance for shared houses can have more exclusions or higher premium, due to the higher risk for items left in mutual areas. However, a discount or specialist deals are often available to those holding an NUS card.

• If you only have buildings insurance: If you’re a homeowner who currently only has buildings insurance as this was a condition of your mortgage agreement, for example, you may want to get contents insurance at a later date. You might also have had a change in circumstances that has led to you requiring contents insurance, such as moving into a previously vacant property

• If your possessions are stored elsewhere: Whether you're in temporary accommodation and are storing your belongings in a family members home, or a professional storage unit, when most of your belongings are not in the same location as your home, you may need a separate contents policy to ensure they are protected

Typical exclusions

All insurance policies have standard inclusions, which can vary from one provider to the next, as well as a list of specific exclusions. Exclusions are either events or circumstances where the insurer will refuse to pay out on a claim, or items they refuse to cover as part of a standard policy (typically very high value items).

Excluded events or items can often be chosen as ‘add-ons’ meaning you can be covered for them if you pay extra for each one. However, the add-ons available also vary by insurance providers. While it’s important to read your policy summary document carefully, typical exclusions include:

• Wear and tear - Items that stop working or become unusable due to age or use

• Mechanical/electrical breakdown - similar to wear and tear, but specifically relating to older or high use electrical items and appliances

• Unoccupation - Standard contents policies often become invalid if the property is uninhabited for around 30-60 consecutive days

• High-value items - Most insurers have a single article limit of £1,500-£2,000. For the average household this isn’t a problem, but for those with high end electrics and appliances, jewellery or art work, it may leave you insufficiently covered. The majority of insurers allow you to declare each high item to your policy separately for a higher monthly fee, but they must be declared to be covered

• Accidental damage - Baseline contents insurance policies don’t tend to cover accidental damage, such as smashing a phone by dropping it onto the patio, spilling paint on your carpet, or damage by pets/children. Accidental damage cover is a very common home insurance add-on, although some higher tier policies include it with their contents insurance

• Business related items - While many people now work from home, it’s important to note that standard contents insurance won't usually cover specialist business equipment, such as trade tools or stock stored at home. Although these can often be added on as specific business. If you only use traditional office equipment such as a desk, laptop and printer, you may be covered under a baseline policy, but always check

• Tenants' liability insurance - If you rent your home as a furnished property, it’s often a good idea to include tenant’s liability insurance as an add-on. While this is rarely included in a standard contents insurance policy, it can be invaluable if you accidentally damage your landlord's furniture or carpet, for example

• Items outside of the home - Most people carry an expensive phone around with them, but even with contents insurance, any theft or damage is typically only covered if it happens in the home. Particularly if you regularly take high value items out of the home, it’s a good idea to look for this add-on, which is usually an exclusion of a standard policy

Get bespoke contents insurance quotes

If you’re looking for a bespoke contents insurance quote that covers your belongings based on your exact circumstances, it’s a good idea to speak to an expert broker, like ourselves. There are hundreds of home insurance providers in the UK, each with a wide range of policies that have different exclusions and terms.

An experienced insurance broker can look at your specific needs, and match you to the most suitable lender, at the most competitive rate for your home and circumstances.

Get bespoke home contents insurance quotes today

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Best providers for contents cover

The best contents insurance, or home insurance provider for you will depend entirely on what you need to cover, how your home is set up, and your lifestyle circumstances. While one provider may have cheaper premiums than the next, you may lose out by having to pay a larger premium when you claim.

Here are some of the most popular UK contents insurance providers, and their standard inclusions/exclusions for easy comparison. Keep in mind that this is a very small snapshot of the total number of insurers available, so it’s best to reach out if you want to review the whole market:

How the cost of your premiums is calculated

When calculating home insurance premiums, providers use complex algorithms to assess the likelihood of you making a claim and how much they may have to pay out in the event that you claim. This is often based on:

• the value of your possessions

• your individual property’s security

• the geographical location in terms of natural disaster and criminal risks

• how many insurance claims you’ve made in the past

If you’re looking to reduce the cost of your insurance premiums, as well as searching the market for cheaper providers, you can often opt to:

1. Pay your premium annually - which is often slightly cheaper

2. Commit to paying a higher excess - which typically reduces the monthly premiums

3. Make use of no-claims periods - while rare than they used to be, some insurers offer a ‘no-claims bonus’ to loyal customers who have had a policy with them but never claimed

4. Get advice from a broker - they may be able to point out savings you were unaware or have access to unique offers not available directly

Why choose Money Helpdesk for your home insurance?

Finding the right home contents insurance policy with so many providers offering slightly different tiers, exclusions, and limits can be a nightmare. At Money Helpdesk, we quickly connect you with protection that most closely matches your living situation and coverage needs without the comlpexity.

Our specialists have access to a huge range of options from across the entire UK market, including exclusive deals you won't find on standard comparison sites. For a free, no-obligation consultation, get started here and let us help you find the best cover for your needs.