Contents insurance
Contents insurance provides protection for your belongings inside the home - and sometimes outside too. Although there are slight differences in the way it works, its main purpose is to cover all or part of the cost of replacing your possessions should they be damaged, destroyed or stolen.

The contents of your home will usually include anything that is not a fixed part of your home - any personal artefacts, computer systems, camera, TV, HI FI and other appliances, clothes, jewellery, furniture, fittings, and even the contents of your fridge and freezer.

Your contents insurance may well include some element of cover for items that you take away from the home. This usually includes bicycles or prams, though some policies even cover the contents of your handbag should it get stolen. Other things that your policy may cover include accidental damage and any legal expenses you may incur whilst pursuing or defending any personal liability claims.

As with your buildings policy, the insurer will ask you a host of questions to determine your premium. They will ask about:

Your occupancy at the property. Whether you are there in the daytime or out of the country for six months at a time can have a big impact on the cost of your policy.

• The security devices you have fitted.
• Your current employment.
• High profile public figures can suffer from higher than average premiums.
• Your past claims record.
• Your criminal record.
• Any other factor that the risk assessors in the insurance company feel may offer them an insight into whether you are likely to be making a claim in the future. One important factor is your postcode and the general level of claims in that area.

Make sure you disclose everything that is asked of you. Answer all questions to the best of your knowledge. Failure to do so is called nondisclosure and will nullify your policy in the event of a claim. Insurance companies are businesses not charities and will generally try to legitimately minimise the amount of money they pay out. One of the ways they do this is by checking all the details you disclosed when you took out the policy. If you falsified the information that you gave them, they have the right not to compensate you for your losses.