Contents insurance is a necessity for both homeowners and tenants, to cover the value of possessions or property in the event of damage, destruction, or loss. This includes all non-permanent structures and fixtures in your home, as well as furniture, appliances, electronics, and some valuable. Items of very high value (such as jewelery or some electronics) may need to be insured separately to achieve complete coverage of their value. Although coverage is not required, it is advisable.

Your possessions are covered through contents insurance, as well as belongings of your family that live in the same household. Others may be included, dependent upon the specific insurance policy.

Landlords should make sure that any possessions that are included in home rentals are covered by contents insurance. Tenants should have coverage for all of their non-rented possessions.

Contents insurance is valid in case of weather-related damage, fire, and criminal activities such as theft and vandalism. Although accidental damage is not usually covered, policies can be extended so that "accidental damage and all risks" are included. This may be a good option for high-risk individuals and families, such as those with children or pets, or those that travel with items of value. The policy should cover the cost of replacing your possessions, not the current value of the items. By spending just a little time to compare quotes, you can save a lot of money and trouble on premiums.