PEACE OF MIND?
An insurance policy may offer peace of mind but is it really worth it financially?
Is a boiler insurance policy really worth it, or is it better to put the money aside?
The unpredictable weather continues. We’ve gone from summer in February to wind, rain and cold in March.
Many of us will have started to have the heating on at home much less, only to ramp it back up in recent weeks – and for most that means using a gas boiler.
Cue insurance companies and brokers pushing the merits of boiler insurance.
They say there’s a big increase in claims – and that millions risk big bills because they have failed to take out cover.
But while the peace of mind they offer appeals to many, their prices are far less compelling.
Research from Which? shows that boiler protection plans can cost £250 a year or more.
What you pay can depend on the cover.
More expensive plans include annual boiler services, and perhaps help with electricity and plumbing problems.
Less expensive plans, suitable for
relatively new boilers, may not include servicing.
But most people would be better off putting insurance money in the bank.
Recent figures from Which? reveal that just 4.5% gain from policies – just under one in 20.
That’s because the likelihood of needing an expensive repair is low. Our survey of more than 12,000 boiler owners found that, typically, you’ll need to pay for a boiler repair once in three and a half years.
That will cost around £155 to £205. Paying for an annual service – £81 on average – plus saving on the policy and only laying out for a repair when something goes wrong leaves typical homeowners around £227 better off over three years, according to Which? analysis.
Peace of mind really boils down to knowing that you’ll have someone to call if something goes wrong. But finding a reliable local engineer to carry out annual servicing could mean you have a person on call if the boiler fails, in any case.