An all-risks policy (sometimes referred to as extended contents cover) indemnifies the policyholder for damage, loss, or theft of items that are frequently or occasionally taken out of the home.

Cover is normally divided into two categories:

• Unspecified items – these need not be specifically named or listed, but each item must have a value below a specified amount;
• Specified items – these items are above the single-item value limit and are individually listed.

The policyholder must take reasonable care of the property at all times in both cases.

If you are a tenant in a rented property, the homeowner will have insurance to cover the building, but this does not cover your possessions. There is a policy commonly referred to as Tenant’s Contents Insurance, which covers the items belonging to the tenant only. It is important that the value of the contents is calculated correctly because that will be the sum paid out, should something happen. The tenant must include any items stored in the garage, shed or attic.