Is it worth paying for insurance cover on utility systems? If you look at the figures, it makes sense
Like most insurance policies, paying to cover household fittings like boilers and plumbing is a bit of a gamble – if you never claim on the policy, it’s money down the drain. But when you do need to call on it, you might find that the cost of the premiums is made more than worthwhile compared to the worth of the cover.
Let’s look at boilers. According to Uswitch, 23m homes in the UK have a gas boiler to supply heating and hot water. Repairs can be costly, averaging around £500, and the price of a new boiler can vary from £1,500 to £5,000. And despite (or perhaps because of) the fact that the government plans to phase out gas boilers, UK sales in 2021 were up by 41 percent over 2020, to 675,000, perhaps partly due to people wanting to install more modern, energy efficient boilers.
But if you are reliant on your boiler for both hot water and heating, and particularly in the winter months, you can find yourself in a pickle if your boiler packs in.
Repairs
Boiler repairs may be covered on your home insurance, but if not, a boiler cover policy might cost you as little as around 25p a day. For that you could get a 24-hour emergency repair service for the boiler, controls, and central heating system, including parts and labour, and an annual boiler service. Look for a policy where there is no limit to the cost or number of the repairs.
Modern boiler systems that have been looked after with regular boiler maintenance burn their fuel more efficiently than old models that have been neglected. Looking after your boiler on a regular basis will also reduce the risk of gas leaks, and improve protection within your home (including carbon monoxide safety).
Pipes
Another household cover area which is often neglected is external water pipes. Your home insurance should cover you for bursts and leaks inside the home, but it’s not always understood that if you are a homeowner, you (not your water supplier) may be responsible for the water supply pipe passing from the mains through your grounds or garden to your house.
Check whether your home insurance covers this, and if it does not, consider separate cover. Then, if you wake up one morning to find your driveway flooded because cold weather has burst the supply pipe (been there – Ed.), you will be able to claim on your insurance for what might be a costly repair job.
This feature was first published in Property & Home with Martin Roberts, Autumn/Winter 2023. See more here.
