Whether you own or rent your home, the value of your stuff can quickly add up. So, what if the contents of your home — such as furniture, electronics and clothing — were damaged or stolen?

The good news is that renters, homeowners and condo insurance policies typically include coverage for the contents of your home. This coverage is sometimes known as "contents insurance," but is usually described in most insurance policies as personal property coverage.

Contents insurance helps pay to replace or repair your personal belongings if they're stolen or damaged by a covered peril, such as a fire. So, if someone breaks into your home and steals your laptop, or your clothing and furniture are ruined in a fire, you may find that contents insurance helps cover the loss.

It's important to understand the type of coverage you have and how much your policy may pay for a covered claim so you can be better prepared if you ever need to file a claim. Read on to learn about how contents insurance works, coverage limits and some things to consider.