Warning of boiler insurance costs

Householders could be paying thousands of pounds over the years for boiler insurance cover they do not need, says a leading consumer group.

Which? says that, even if customers needed a typical boiler repair every year for 10 years, they could still end up around £2,000 better off than if they took out annual cover.

The watchdog asked more than 7,000 of its members ab out their experience of boiler repairs and services, and analysed costs to work out whether boiler cover is more cost effective.

It found just 6% of boiler owners would have benefited financially if they had had boiler cover, with the overwhelming majority being better off paying for repairs and servicing, as needed.

Half (48%) needed a repair in the past five years, costing an average of £107 per repair.

With an average annual service cost being £80, the c o m b i n e d c o s t o f p ay i n g when required was still £101 cheaper than the average annual boiler cover premium of £288.

Which? says people would be better off setting aside cash for emergency household repairs and also points out that most home emergency policies include some boiler repairs and sometimes even replacement.

H a r r y R o s e, e d i to r o f Which? Magazine, said: "Our analysis shows that boiler cover is rarely worth the money. Excessive premiums cost customers hundreds if not thousands of pounds more than if they paid for repairs and servicing themselves.

"If you have boiler cover for peace of mind, don't pay for cover you don't need and check you're don’t have to pay extra for unexpected exclusions like servicing."