Contents insurance provides cover for your household possessions such as televisions, videos, carpets, and furniture.

Most policies will cover you for fire, flood and theft and many will also pay out for accidental damage.

The cheapest type of contents cover is indemnity insurance which will replace exactly what was there before, so if you claim for a dishwasher that was already two years old, you will be given a replacement washing machine that is three years old.

The more expensive "new for old" option will give you a brand new replacement of whatever gets damaged or stolen, thus you would get a brand new dishwasher.

Your policy will cover your possessions for up to a certain amount, either stated by you, or categorized by the insurance company.

Most policies impose limits on the value of precious items like jewellery, works of art and ornaments – which are best insured separately.