In recent years all of the main energy companies have been clamouring to sell us annual insurance policies which cover breakdowns to the boiler and repairs when something isn’t working properly.
Boiler cover is a type of insurance you can take out in case something goes wrong with your boiler, central heating, or both. It can help cover the costs of engineer call-outs and labour costs as well as expenses for parts needed for repairs.
Costs for boiler cover policies can vary depending on where you live and the type of boiler you have, but generally cost between £90 and £150 per year.
So is it an investment worth making in these packages?
Boiler coverage and exclusions
It’s always important to check the terms and conditions whatever sort of policy you are buying, and as with other types of insurance there are exclusions with boiler cover policies too.
Often older boilers which have been installed for more than 7 years are not covered, just because they are more likely to break down and getting spare parts can be impossible.
Electric or oil fired boilers might need a different type of policy, and all policies have a minimum waiting period before a claim in order to stop people taking out the policy when their boiler has already broken down.
What are the chances of my boiler going wrong?
If you take out a boiler coverage policy for £100 and a few months later your boiler breaks down and the repair is estimated at £300, it’s obviously been a worthwhile investment.
The problem is that we just don’t know when our boilers are going to go wrong, and the other side of the coin is that you might pay £100 and the boiler works perfectly.
It is estimated that 20% of boilers break down each year, so many decide to take the risk and chance it without insurance.
Other homeowners might be covered on a home emergency section of their home insurance, and others find that the £95 excess on any repair cost outweighs the benefit.
Alternatives to a boiler coverage policy
If you have just had a brand new boiler installed then a boiler coverage policy is pointless as most new boilers are covered by a manufacturer’s warranty for two or three years.
If your boiler is in good working order and you are paying to have it serviced regularly, it can be a good idea to put aside £10 or £20 per month into a household emergency fund which can cover repairs or a replacement boiler if needed.
As long as you get someone who is Gas Safe registered to carry out any repairs or work to your boiler, you don’t have to use someone working for a large company or who is connected with the boiler manufacturer or your energy supplier.
Getting your boiler repaired
If you sign up to a boiler breakdown policy, the insurer will organise for someone to come out and fix it for you when it fails.
If you are organising repairs by yourself, ensure you ask at least three local Gas Safe engineers about prices for fixing your boiler.
Remember that you will need to pay a call out charge, hourly rate for labour as well as for any parts needed for the repair.
