Home Contents Insurance

Contents insurance protects personal belongings kept inside a home against specified risks. It generally covers items such as furniture, clothing, electronics and household goods owned by the policyholder. Protection applies to possessions within the property rather than the structure itself. The level of cover depends on the insurer selected and the policy wording.

Contents insurance typically protects belongings against insured events such as theft, fire, flooding and certain types of accidental damage. Items covered may include furniture, electrical appliances, clothing and personal possessions kept within the home. The scope of protection depends on the policy terms, limits and excesses set by the insurer.

The contents sum insured means the cost of replacing all insured belongings as new. This figure should reflect the combined replacement value of furniture, clothing, appliances and personal possessions within the home. Market resale value is not usually used. Many insurers provide guidance or calculators to help estimate an appropriate total.

Most contents policies include limits on the value of individual items. Jewellery, watches, artwork or high specification electronics may exceed the standard single item limit. Where this happens, the items may need to be specified separately on the policy. Limits and requirements vary between insurers.

Some contents policies offer optional cover for belongings taken away from the property. This extension can apply to items such as mobile phones, laptops or jewellery when carried outside the home. Availability depends on the insurer and policy selected. Conditions, limits and excesses may apply.

Accidental damage cover may be included or offered as an optional extension depending on the policy. This type of protection applies to sudden, unintended incidents such as spilling liquid onto carpets or damaging household items. The exact scope of protection varies between insurers and policy wording.

Contents insurance can be arranged by tenants to protect personal belongings kept within a rented property. While landlords normally insure the structure of the building, tenants remain responsible for their own possessions. Contents insurance provides protection against risks such as theft, fire or water damage affecting those items.

If the total value of belongings is underestimated, the policy may be considered ‘underinsured’. In some cases, insurers may apply a proportional reduction to claim payments under policy conditions. Reviewing the contents value regularly helps ensure the insured amount reflects the current true replacement cost of possessions.

Theft is commonly included as an insured event within contents insurance policies. Cover generally applies to belongings stolen from inside the property following forced entry.
Policy wording may set security requirements, excesses and claim limits. Terms depend on the insurer selected.

Contents insurance through Performance Direct may be arranged where individuals wish to protect personal belongings kept within their home. This can apply to homeowners or tenants who want cover for furniture, electronics and other possessions. Policies are arranged based on the declared contents value and property circumstances, subject to insurer underwriting criteria.