Insuring your home may seem like throwing money down the drain when finances are already tight, but imagine how much more expensive it would be to replace your possessions if the worst happened.

Contents insurance is designed to protect the items in your home that are not part of the fabric of your home (i.e. the bricks and mortar), including: furniture; home entertainment systems like TVs, stereos; laptops, computers; books, CDs; curtains and carpets; and clothes.

Your contents insurance even covers some items that reside outside of your home or that you may carry on your person may be covered, including: bikes; gardening equipment; the contents of your wallet or handbag; and even luggage when travelling abroad.

What should contents insurance cover?

The most common events you should cover your contents against are:

• fire
• theft
• flooding
• earthquakes
• vandalism

Some insurers even offer cover to replace lost keys, so ask when you are getting a quote. If you have very expensive items in your property, such as antiques, expensive jewellery and paintings, make sure you check with your insurer to make sure they are covered – you may need to get specialist insurance to get adequate cover.

Are you adequately insured?

Many of us are under-insured and when it comes to making a claim, you may find you’ve not got enough cover, that’s why it is important to review your insurance policy regularly (at least once a year).

To get an accurate calculation of the value of your possessions, Make a note of all your household possessions and write it’s current value next to it before speaking with your insurer, so that when they ask you what the value of the contents of your house is, you don’t miss anything out.

A couple of terms that insurers will use are excess and new-for-old.

Excess

Like car insurance, home contents insurance also has an excess amount, which is the amount of money you would have to pay when you make a claim. In some cases, the item damaged might be worth less than the excess you pay, so you may want to replace the item yourself to avoid making a claim and impacting any no-claims bonus you have built up.

New-for-old

Some policies offer a new-for-old replacement service for lost or damaged items. This means that your insurance company will replace an item with a brand new one. Although your premium might be a little higher if you choose this option, it could be well worth it should the unthinkable occur.

Remember: it’s better to be over-insured than under-insured. You may find you have to pay a little more in premiums, but at least you can be assured that your possessions are well protected.

How to get the best deal on your insurance

Shop around! Compare home insurance quotes from at least three insurance providers and weigh up what you’re getting against the cost of each policy. There are numerous price comparison websites around that will search the whole market for you in a matter of minutes and even allow you to apply there and then.

Many insurers will give you a discount if you buy buildings and contents insurance together – but you can only buy buildings insurance if you own your home.

You’ll often get cheaper house insurance quotes if you decide to apply online, so shop around.