Contents Cover

Unlike buildings insurance which covers the physical property, contents insurance covers the possessions inside the building should anything untoward happen.

Types of Contents Insurance

In general, contents insurance policies fall into three categories: sum insured, bedroom rated and unlimited sum insured.

  • Sum insured contents insurance gives you the most freedom as it allows you to calculate exactly how much cover you need. This means that, providing you do the calculations properly, you can purchase just the right amount of contents insurance which prevents you from paying for more cover than you need.
  • Bedroom rated contents insurance is calculated according to the number of bedrooms in your house. The main pro of bedroom rated contents insurance is that you do not need to painstakingly work out exactly how much contents insurance you will need. In general, most bedroom rated policies will offer the individual up to £50,000 cover, which is adequate cover for most houses.
  • Unlimited sum insured contents insurance, as the name suggests, this type of cover protects your contents for an unlimited amount which eliminates the possibility of being uninsured should something happen to your contents.

When researching contents insurance on the internet, you will notice that both New for Old and Indemnity policies exist. Most insurance brokers offer a New for Old policy, which means that if your items are damaged or stolen, you will be awarded the new value of the item. On the other hand, Indemnity cover only provides you with the current market value of your possessions which, due to wear and tear and depreciation, is often significantly less than the price that you originally paid for the item. While this type of cover seems unattractive, many people are drawn towards it as indemnity cover has lower monthly premiums.

How to get the best contents insurance deal

Take advantage of price comparison sites. These sites allow you to compare contents insurance coverage and premiums of a number of top UK insurance brokers. This can save you both time and money, as many insurance comparison sites also highlight if there are any special online discounts or deals available.

If you have decided to opt for sum insured contents insurance, you will need to calculate just how much contents insurance you will need to cover you possessions. This can be quite a difficult task as you will need to think about all of the possessions in your home, including furniture and clothing.

Nevertheless, a number of insurance brokers have put together online insurance calculators which allow you to calculate how much your values are worth and how much contents insurance you will need.

Take a closer look at optional extras. Although many keen savers are quick to dismiss optional extras as superfluous, this may be a false economy. One example of an additional extra is personal possessions cover; this protects your personal possessions when you are out and about, both in the UK and abroad. If you frequently travel with your laptop or smartphone, it may be worth looking into this optional extra.

In addition, if you are thinking of taking out buildings insurance at the same time, you may want to look into getting a buildings and contents insurance policy. This type of policy couples buildings insurance and contents insurance, making it easier for you to manage your finances. In addition, sometimes it works out cheaper than purchasing the two policies separately.

Top UK Contents Insurance Providers

Provider Maximum Cover for Contents Maximum Discounts Available Maximum Cover per Valuable Item
Direct Line £50,000 40% (online) £10,000
Aviva £150,000 40% (no claims)
20% (online)
Churchill £100,000 50% (no claims) £15,000
LV= £150,000 10% (online) £1,500