Contents insurance: what it covers and how to value your belongings

Contents insurance covers the things inside your home, from your sofa to your phone, against loss, theft and damage. Yet around a third of UK households have no contents cover at all, often leaving themselves exposed. This guide explains what contents insurance covers, how to value your belongings, and the difference between new-for-old and other settlements.

What contents insurance is

Contents insurance covers your possessions: the things you would take with you if you moved out. That includes furniture, beds, electrical goods, televisions, computers, kitchen appliances that are not built in, clothes, kitchenware, carpets, curtains and personal belongings. If these are damaged, destroyed or stolen by an insured event, contents cover pays to repair or replace them. It is the natural companion to buildings insurance, which covers the structure rather than the things inside.

What counts as contents

A simple way to picture contents is to imagine tipping your house upside down: whatever falls out is generally your contents. That covers the obvious items like sofas and electronics, but also things people forget, such as carpets, rugs, curtains, light fittings that are not wired in, and the food in your freezer. Some items sit in a grey area, so if you are unsure whether something is buildings or contents, it is worth checking with your insurer.

How to value your contents

To insure your contents properly you need a sum insured, which is the total cost of replacing everything. The best way to work this out is to go room by room, listing your belongings and estimating what it would cost to replace them at today's prices, not what you originally paid. People routinely underestimate this, forgetting how much a houseful of possessions adds up to. An accurate sum insured ensures you are properly covered without overpaying for cover you do not need.

New for old versus indemnity

Contents policies settle claims in one of two main ways. New-for-old cover replaces a damaged or stolen item with a brand new equivalent, regardless of the age of the original, which is the better option for most people. Indemnity cover, sometimes cheaper, pays the current value of the item after wear and tear, so an old television would be settled at its depreciated worth. Check which basis your policy uses, as it makes a real difference at claim time.

Sum insured versus bedroom-rated

Insurers price contents cover in two ways. A sum-insured policy asks you to set a total value for your contents. A bedroom-rated policy estimates the value based on the number of bedrooms, which is simpler but can leave you under or over-insured if your possessions do not match the assumption. If you choose a bedroom-rated policy, it is still worth checking the assumed cover is enough for what you actually own.

Single item limits

Most contents policies cap the amount they will pay for any one item, known as the single article limit, often somewhere around one to two thousand pounds. Anything worth more than this limit, such as an engagement ring, a watch or a piece of art, usually needs to be listed separately, or specified, to be fully covered. Failing to specify a valuable item can mean a claim for it is capped at the single article limit, leaving you short.

Cover away from home

Standard contents insurance covers your belongings inside your home. If you want cover for items you take out and about, such as a phone, laptop, jewellery or a bike, you usually need personal possessions cover, which can be added to your policy. This protects specified or unspecified items against loss or theft away from home, often worldwide, as explained in our guide to personal possessions cover.

Why tenants need contents insurance

If you rent, your landlord insures the building, but they do not insure your belongings, so contents insurance is down to you. Many tenants assume they are covered by the landlord and are caught out after a theft or a flood. Tenant contents insurance is usually inexpensive and well worth having, since replacing a whole household of possessions from scratch would cost far more than years of premiums.

How much does it cost?

The average contents-only premium was around £117 a year in early 2026, according to the Association of British Insurers, making it one of the more affordable types of cover. The price depends mainly on the total value you insure, your location and your claims history. Because it is relatively cheap, the saving from going without rarely justifies the risk, and there are better ways to cut the cost, as our guide to lowering your home insurance explains.

Accidental damage to contents

Standard contents cover protects your belongings against insured events, but not everyday accidents like dropping a laptop or spilling something on the sofa. For that you usually need to add accidental damage cover, as explained in our guide to accidental damage cover. Whether it is worth adding depends on your household, but it is worth knowing that without it, a claim for an accidental mishap to your contents will often be turned down.

Cover conditions to watch

Contents policies come with conditions that affect whether a claim is paid. Insurers may require certain locks to be used, and cover for theft usually depends on there being no forced entry only in specific circumstances. Leaving your home unoccupied for an extended period can also affect cover. Reading these conditions matters, because meeting them is what keeps your policy valid, and overlooking them is a common reason claims are reduced or refused.

Reviewing your contents value

It is easy for your contents sum insured to drift out of date as you buy new things over the years. A periodic review, ideally at renewal, helps ensure the figure still reflects what it would cost to replace everything you own at today's prices. This protects you from under-insuring, which can see a claim reduced, and is a good moment to note any new high-value items that may need to be specified separately.

Contents insurance is often cheaper than people expect for the protection it offers, which makes it one of the easier decisions in home cover. The main effort is simply valuing your belongings honestly and keeping that figure up to date, so that a claim would genuinely replace what you have lost rather than leaving you short.

In short

Contents insurance covers your belongings, the things you would take if you moved, against theft, loss and damage. Value them room by room at today's replacement cost, choose new-for-old settlement where you can, and specify any item worth more than the single article limit. Tenants need their own contents cover. At around £117 a year on average, it is affordable protection that around a third of households still go without.

Where to get help and next steps

Read our guide to personal possessions cover for items you take out of the home, and how to lower your home insurance for ways to save without cutting protection.