What is direct home insurance?
Direct home insurance is a form of insurance policy that you can buy directly from the insurer which provides financial insurance for your home, which will protect both the structure and contents of your home.
A direct home insurance policy is usually made up of different elements, with contents insurance looking after the contents of your home, and buildings insurance looking after the actual structure of your home. You may also add on boiler cover, which will cover the cost of any repairs or replacement of your boiler and heating system, and appliances warranties, which extends the warranties of any appliances in your home for the duration of the insurance policy.
You can even add multiple birth insurance to a direct home insurance policy which will pay out if you give birth to twins or more whilst you are in possession of a policy.
How does direct home insurance work?
Standard direct home insurance is split in two, with contents cover looking after your contents, and buildings cover looking after the structure of your home. Your contents cover looks after the contents of the home, and anything that is not built in and fixed down.
Contents cover includes your carpets, furniture, appliances like fridge, freezer and washing machine, and the contents of your fridge, freezer and kitchen cupboards. One of the biggest mistakes people make when taking out direct home insurance is under insuring the contents of their home as they fail to add up the value correctly.
When considering the cost of replacing everything in your home at today’s prices new, many people will be stunned to work out how much everything in their home once cost.
The buildings cover element of a direct home insurance policy will look after the actual structure of your home, as well as anything built in within the home, and any external walls, fences and outbuildings like the garage and shed.
Internal structures like built in cupboards and wardrobes, and your kitchen units and worktops are covered under your buildings cover, although the cooker may not be.
Do I need direct home insurance?
You need direct home insurance if you are responsible for either the building itself, or the contents of the home. You can take out just buildings cover, or just contents cover if you are not responsible for the other half of the policy.