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When you sign up for iCloud, you automatically get 5 GB of free storage. Your iCloud storage is used for iCloud Backup, app data and documents stored in iCloud, and iCloud Mail (your @icloud.com email account).
You have important information on your iPhone and iPad. iCloud automatically backs up your device over Wi-Fi every day while it’s turned on, locked, and connected to a power source. With your device information backed up in iCloud, you can easily set up a new device or restore information on one you already have.
Here’s what iCloud backs up:
Your iOS device backup only includes data and settings stored on your device.
It doesn’t include data already stored in iCloud, for example contacts, calendars, bookmarks, mail messages, notes, shared photo albums, iCloud Photo Library beta, My Photo Stream, and documents you save in iCloud using iOS apps and Mac apps.
*Your contacts are part of the backup to preserve recent calls and favorites lists. To avoid any potential contact data loss, back up your contacts to a supported personal information manager (PIM) or another cloud-based service (such as Gmail or Microsoft Exchange). You can also make a copy of contacts that are in iCloud. Learn about backups in iCloud.