Contents insurance covers the ‘material possessions’ in your home, for example, a stereo or iPod, clothes, curtains, carpets and furniture (put simply, contents insurance covers anything that can be moved while buildings cover insures anything that can’t).
In most policies, the cover extends to areas outside the main property, such as a greenhouse, conservatory or garage. However, more expensive items, usually of £1,000 plus — an expensive computer or jewellery, for example — may have to be insured separately as the majority of policies have limits on payouts.
As a policyholder, you will normally be covered if your possessions are stolen, or damaged, for instance, by fire, flood, burst pipes, boilers or storms.
However, most policies do NOT cover such things as general wear and tear and, unless they offer additional accident cover, spilled paint on a carpet.
The important thing is to understand that every policy is different, to always read the small print for exclusions and to shop around for the best cover and price. If you are unsure about anything, always speak to an experienced and professional broker.