Contents Insurance

Unless you're the luckiest person who ever walked the face of the Earth, contents insurance isn't a nice idea: it's essential. If you don't believe us, sit and work out how much it would cost to replace the stuff in your front room: a new telly, a new stereo, a carpet, curtains, the sofa, your Xbox and so on. If your house goes on fire or you're visited by burglars, contents insurance will replace all of it.

Get new-for-old cover or you could be in for a shock: that three-year-old telly is probably only worth a few quid now, but to buy a similarly specified new one could be in the high hundreds. Watch out for excesses, too: if you claim, you have to pay the excess – so on a £300 claim you might have to pay the first £50 or the first £100 depending on policy.

Many insurers limit the value of high-risk items, so if you've got a state-of-the-art PC make sure your insurer will cover it adequately. Look for policies with accidental damage as standard, too: many firms will cover your TV, stereo and PC and replace them if you break them.

Finally, check the small print. Many firms will automatically increase your cover in December to insure any Xmas presents, and will also cover wedding gifts if you get married. Others won't, so make sure you read the cover details carefully.