Contents insurance - unlike buildings insurance - isn't compulsory, but most of us would struggle to replace our precious possessions if they were stolen or damaged by fire or a flood.

What does home contents insurance cover?

Home contents insurance covers your possessions against loss or damage by theft or attempted theft, fire, explosion, lightning or earthquake. It will also insure against water leakage, storm or flood damage.

Insurers define 'contents' as the sort of things you would take with you if you were to move house, including furniture, clothes, electrical items, money and jewellery. Home contents insurance also covers some fixtures such as carpets and curtains.

There are broadly two types of cover.

'As new' or 'new for old' contents insurance

Most policies these days are 'as new' or 'new for old', which means that if something is damaged, the insurance will pay the full cost of repair. If something is stolen, the payout will be enough to buy the equivalent new item.

Check the policy details, though, as some items, usually clothes are not covered on a new for old basis.

Indemnity contents insurance policy

You can choose an indemnity policy instead. Indemnity policies are cheaper because any payout is reduced to take into account wear and tear or depreciation in value. For example, if your five-year-old laptop is stolen, the claim will be based on its current value, not the price when it was new.

To get your home contents insurance quote today call us now on 01708 753179