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@Hendrik
Yup, M&S are almost too good to be true on their contents policy! It is definitely true though, and no they don't pay out in Halfords vouchers. When I had a bike stolen a couple of years ago they were very helpful indeed. It went through as a full custom build due to the number of upgrades and changes I'd made over the years so basically, they quoted me an equivalent spec value and then said I could have whatever I wanted up to that figure.
The only thing to be wary of is that they go through an agent (basically a bike shop in Wales that specialises in insurance replacements) and said agents proved to be something of a bunch of muppets. As noted though, M&S themselves were great and kept chasing things up whenever it got stalled with the agent.