Boiler insurance cover: Is it worth having?
Friday, 02 September 2011 12:01
By Kate Saines
We might still, officially, be in summertime. But with autumn just around the corner many of us will be wondering if our boilers will withstand the cold months. Leading on to the conundrum – do we need boiler insurance?
After all, there’s nothing worse than waking up on the first chilly day of autumn to discover your warm shower is out of the question because the boiler’s on the blink.
And, let’s face it, if our boilers are going to break down – they always seem to do it at the onset of the first cold snap.
Chris Eagle, product director at Energychoices.co.uk, said if a boiler breaks down or needs replacing it can result in an ‘incredibly expensive’ repair bill for people.
“Boiler cover can offer homeowners peace of mind their central heating system will be repaired quickly, without costing a packet,” he said.
But with energy companies hiking their prices and the cost of living soaring, is paying out a premium for insurance we might not claim on particularly economical?
And even if our boiler needs attention, we can always dip into our savings to pay for any unexpected breakdowns?
For those of you debating these points, we’ve analysed the pros, cons and provided some tips on getting the best policy to help you decide if it’s worth the money.
Reasons to buy boiler cover
If you rent your home, you will not need to buy boiler cover as your landlord should have taken care of this. It’s just owner-occupiers who need to consider taking out insurance for their boiler.
So if you own your own home what benefits could boiler cover provide you with?
There are two types of boiler cover – one insures your boiler and its controls, the other is more expensive and covers the entire central heating system.
You can also buy home emergency cover which extends to problems with blocked drains, burst water pipes, electrical failures or even lost keys.
The idea of boiler cover is, if there’s an emergency an engineer will come as soon as possible to fix the problem. Provided the fault is included in your policy, you will not need to pay for the repair, as the call-out, labour and parts will also be included.
The definition of emergency differs from provider to provider, however. Some do not consider ‘no hot water’ as an emergency and many will not include claims for heating systems which break down during summer. Other benefits included in boiler insurance policies include an annual service.
And it is perks such as this which energy comparison website uSwitch.com include among their reasons for encouraging people to buy boiler cover.
Ann Robinson, director of consumer policy for the website, said: “Those who have cancelled or decided against cover might think they are taking a chance with their money, but if they are also not getting their boiler checked they are taking a chance with their health.
“Some policies provide a free annual safety check as part of their service. As well as offering peace of mind it also means householders will be prompted to book in a service every year.”
You can also find policies which will provide a cash contribution if the boiler is beyond repair. The number of claims you can make in a year varies from policy to policy but most seem to allow between two and four. You can also find policies which offer unlimited claims.
Remember, you pay for what you get. So you will fork out higher premiums for a policy with unlimited call-outs, emergency home cover and an annual service.
Where you live, the make and model of the boiler and the type and size of your home will also affect the price you will pay. As such it’s difficult to provide you with an ‘ideal price’.
However, for a boiler-only policy covering a two-year-old boiler in a three-bedroom semi-detached house in the south-east of England you’d be looking at paying between £89 and £156 per year, depending on the level of cover.
Ms Robinson added: “While sensible cutbacks such as delaying switching the heating on and turning the temperature down slightly will help save money without any serious side effects, going without boiler cover could leave you in a very difficult position financially if your boiler packs up.
“If you don’t have the savings and would struggle to meet an unexpected bill then boiler cover may be worth looking at for peace of mind.”
Use the Myfinances.co.uk comparison tables to find the best deal on all types of insurance.
Potential pitfalls of boiler cover
You could, of course, have boiler cover for five years and never need to make a claim. In this case, if you’ve paid £100 a year for a policy you will have spent £500, which is the price you would pay (albeit the starting price) to replace a beyond-repair boiler.
With the cost of an annual service starting at around £70 and the average cost of fixing a boiler coming in under £200 it’s hardly surprising many people would rather pay for this and simply not worry about having an extra insurance policy.
However, it’s up to each individual to assess the risk of their boiler breaking down. And most experts in this area would also point out to those leaving it chance that there are health risks associated with boilers – such as carbon monoxide leaks – so having an annual service is essential whether you buy insurance or not.
Energychoices advises that if your boiler is new you might be covered for any repairs under the warranty. In this case you will simply be paying for something you already have if you buy boiler cover.
Alternatively, if your boiler is very old you might not be able to find an insurance policy as most plans exclude models older than 15 years, Energychoices warns.
When assessing the pros and cons it’s worth remembering, as mentioned, there are some so-called emergencies these policies may not cover.
Don’t necessarily expect an instant ‘superman-style’ response to your call if something does go wrong.
Some policies will send an engineer within 24-hours, others in a few days and some might make you wait until a weekday if you call at the weekend and you are not considered a priority.
Watch out for boiler policies’ ‘no-claims’ period. This prevents newly-signed up customers making a claim within 30 days of opening the policy and prevents people buying insurance on the day a fault develops.
Tips for buying boiler cover
Leading on from the previous section, it’s essential you read the small print of any boiler insurance contract. Knowing before you make a claim that your burst pipe is not covered in your contract will save a lot of embarrassment and trouble.
When it comes to choosing an insurance policy, don’t just buy it directly from your energy supplier – even if they try the hard sell on you.
Chris Eagle of Energychoices said: “You are not obliged to take out cover from your energy supplier and whilst there are some expensive insurance plans out there, with a little research households needn’t pay over the odds.”
Both Energychoices and uSwitch have a wide range of boiler insurance policies to compare online and they will help you in your search by providing quotes based on your location and boiler type.
Some of the other comparison websites also provide details of policies. The more research you do the more chance you have of finding the cheapest and best insurance.
So, what do you need to look for in a good policy?
uSwitch suggests people with gas boilers look for a plan which provides repairs to the boiler, a contribution towards the replacement if the system is beyond repair, a number of or unlimited claims each year and an annual service.
Electric boiler customers, meanwhile, should seek out a policy which includes repairs to the boiler, a guaranteed service in the event of an emergency, a contribution toward a beyond-repair boiler, a number of or unlimited calls per year and a helpline number.
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