Finance glossary
Contents Insurance
In simple terms
Contents insurance covers the things inside your home — furniture, electronics, clothes and belongings — against risks such as theft, fire and flooding.
On this page
What does contents insurance mean?
Contents insurance covers your possessions — broadly, the things you would take with you if you moved — against events like theft, fire, escape of water and storm damage. It is separate from buildings insurance, which covers the structure.
Tenants typically need only contents cover; homeowners often buy the two combined.
How contents insurance works
You choose a sum insured for your belongings and pay a premium. If items are lost or damaged by a covered event, you claim and the insurer pays out, subject to the excess, limits and whether cover is new-for-old or indemnity.
High-value items may need to be listed separately, and away-from-home cover is often an optional extra.
How could this affect me?
Contents cover can save you from a large bill if disaster strikes, but only if the sum insured reflects what you actually own. Under-insuring or missing high-value items can leave you short.
Add up the replacement cost of your belongings room by room to set a realistic figure.
Things to watch out for
- Under-insuring your contents can reduce payouts.
- High-value items often need to be specified separately.
- Accidental damage and away-from-home cover may be optional extras.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Contents insurance (opens in a new tab). Accessed 22 Aug 2026.