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Should you get boiler insurance?
By Emma Lunn
Statistics show that a boiler breaks down every 15 seconds somewhere in the UK. Price comparison website uSwitch reports that Brits are spending £64 million a year on call-out charges. Heating and boiler insurance, therefore, can be a cost-effective alternative.
Types of plans
Heating and boiler cover is offered by some energy providers such as British Gas, nPower and Powergen, but also by insurance companies, including Direct Line, Endsleigh and Norwich Union. Many people think that they have to buy their heating cover from their existing utilities supplier. But this is not the case: you are free to buy your heating cover from the provider you want.
Plans range from £4 to £25 a month and cover a range of things from boiler and controls, radiators, thermostats and storage heaters to annual services or inspections. Some of the most expensive policies cover plumbing and electrics too. In most cases, engineers are on call 24 hours a day in case of emergency.
Some policies cover more than others, so it's important you read all terms and conditions associated with any product.
What's the cost?
The cheapest plans just cover your boiler or central-heating system, while the more expensive ones will fix your hot water, radiators, controls, plumbing, drains and electrics. So what you need will depend on your system and what you want to cover. Some providers charge a flat rate per month, while others offer you a premium based on the size of your house and the heating system you have installed.
British Gas is probably the best-known provider and offers several options in its HomeCare range. HomeCare 100 looks after your boiler and controls for £12 a month. It covers parts and labour, unlimited call-outs and an annual safety and maintenance inspection. HomeCare 200 looks after your whole central-heating system, including your boiler, radiator, controls and hot water for £16 a month. HomeCare 300 (£21 per month) adds plumbing and drains. HomeCare 400 (£25 per month) covers everything the other policies do, plus electrics. However, these rates are only guaranteed for the first year of your policy, after which risk-based pricing kicks in and the amount you are charged depends on where you are in the country and the size and age of your heating system.
British Gas has also come in for a lot of criticism lately, with HomeCare customers reporting long waits for engineers and delays in getting parts.
nPower - which uses Homeserve to run policies - is cheaper than British Gas, with cover for your boiler, radiators, controls and hot water costing £10.79 a month. If you just want to cover your boiler and nothing else, a policy costs £8.09 a month. If your home is heated by electric panel or storage heaters, cover for them is just £4 a month.
Direct Line's basic cover, Response, starts at £7 a month. It is cheaper than both nPower and British Gas, but only covers call-out fees and the first hour's labour (no parts), although further work can be done at pre-arranged rates. It does also cover security though, so will cover external locks, doors and windows in the event of an emergency. Direct Line's Total Response starts at £18 a month and covers call-out fees, plus parts and labour up to £1,000. The exact price is dependent on the size of your house and number of residents.
Cover limitations
All policies are subject to some kind of limitation. For example, some have specific definitions of an 'emergency' - you may not be entitled to a call-out for a dripping tap. Others will have financial limits on the amount you can claim or on the number of call-outs you can have each year.
If you have an older boiler and parts are no longer available, you might find it hard to get cover. British Gas, for example, won't replace your boiler if it breaks down beyond repair and is more than seven years old. nPower doesn't set an age limit for boilers, but it won't repair or replace one if it is deemed 'beyond economical repair' or if the cost of repairs exceeds the current value of the boiler.
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