No doubt some of the most precious things you own have a place in your home. For this reason, home insurance is extremely important to protect these valuable items. This can comprise of both contents insurance and buildings insurance.

However, if your property is leasehold you may already be paying a maintenance or management fee. It is quite common that building insurance is covered in this fee – therefore it’s best to check with your landlord or property manager before you take out a new policy that includes buildings insurance. You might find that you only require home contents insurance.

At its most basic, house contents insurance will protect your belongings from damage or loss caused by fire or theft. However, like all insurance products, there are different levels of cover that will include extras. For example, a comprehensive policy can cover:

• Theft of cash in the home;

• Accidental damage to electronic equipment like TVs, hi-fi equipment, DVD players and PCs;

• Damage to or theft of specific valuables like jewellery and gadgets;

• Damage to freezer contents;

• Credit card misuse;

• Theft of presents for the Christmas period;

• Replacement of locks on outside doors.

The price of contents insurance policies can differ greatly from one provider to another, so ensure that you compare the details of what is covered – you may find that one policy is cheaper than another because of certain exclusions. You may also find that if you leave your home empty for a long period of time your cover is affected.

Besides exclusions, the excess can affect the policy cost. This is an amount you pay when making a claim. If you agree to pay a higher excess you may get a cheaper policy.

Do check too if high-value personal possessions like digital cameras or mobile phones are covered, both inside or outside the home – some providers will only provide protection if the items are in your house. You could ask to add this to your policy if it isn’t included.

Great things to look for in your policy include whether the policy offers old for new cover. This means that regardless of how old the item you are claiming for is, you will be offered a brand new replacement. You may find too that some providers will offer you the chance to pay your premium monthly.

Ultimately, as with any financial product, read the paperwork carefully and ask your provider if you don’t understand anything!