Contents insurance is insurance

Insurance

In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...

 that pays for damage to, or loss of, an individual’s personal possessions whilst they are located within that individual’s home. Some contents insurance policies also provide restricted cover for personal possessions temporarily taken away from the home by the policyholder.

In this context "possessions" means anything that is not permanently attached to the structure of the home (possessions that are permanently attached to the structure of the home can only be insured via home insurance.) Some contents policies may also include possessions kept in outbuildings or in the garden area attached to the house.

Contents insurance is usually sold alongside home insurance

Home insurance

Home insurance, also commonly called hazard insurance or homeowner's insurance , is the type of property insurance that covers private homes...

but it can also be purchased as a stand-alone policy, especially for those who are renting rather than owning their home.

External links

• Household contents insurance - Adviceguide
• Home Contents Insurance - Consumer Information – Association of British Insurers