Boiler insurance – what you need to know.

Is boiler insurance worth it? It’s a question that doesn’t always dish up an honest answer; energy providers often use the fear of losing heating or hot water to hike the prices of boiler breakdown cover, leaving businesses with the tough task of sifting through the scare tactics in an effort to uncover insurance that is reasonable in both price and service.

For insurance that will ensure that your boiler is fixed as quickly and cheaply as possible, there are some things that every business owner needs to know:

  • Annual boiler service is essential: most policies will not pay if a boiler breaks and it has not been properly maintained.
  • Older boilers are not always insurable: most boiler plans require a boiler to be below a certain age, usually no older than seven years from date cover is bought. Otherwise, perhaps it’s time for an upgrade?
  • There is a difference between ‘Insurance’ and ‘Service Cover’: the key difference is that with insurance, if the insurer liquidates you’re protected by the FSCS but with service cover, you’ve less recourse it the firm liquidates. Other differences are that insurance (which is subject to insurance premium tax at 6 per cent) covers only faults and repairs whereas a service contract (which is subject to 20 per cent vat) includes annual inspection and service.
  • There are different types of cover that you will need to choose from:
    • Boiler-only cover: the policy will cover only the boiler and its controls but it may include an annual boiler maintenance check and service – depending on the type of boiler.
    • Boiler cover with central heating: the policy will cover the boiler, its controls and the central heating system. The cover provided should include call-out, parts and labour costs and may also include an annual safety check and service.
    • Broad cover: the policy will cover the boiler, its controls as well as plumbing and wiring etc. It’s worth knowing that payout limits can be low when compared to the payout on a standard policy, so if the boiler is the main concern this mightn’t be the best policy.
  • Boiler breakdown policies are extremely varied: so it is important to compare the benefits and ensure that the cover offered is suitable for the needs of the business before picking a provider. Things to check include whether you get access to a 24-hour helpline, how long it will take for an engineer to come round and whether there are any extra charges.

Boiler cover offers peace of mind; knowing that someone with expertise will be at hand to fix any heating issues that might arise, timeously and efficiently. Price comparison sites are great for boiler cover price comparisons but they will not offer detailed information on an entire heating system and its related products.

For further information on boiler repair and maintenance, and advice on heating insurance, feel free to contact the CH Systems team on 0208 302 8149 or info@chsystems.cc.

Sources: Moneysupermarket.com – “Guide to buying boiler breakdown cover” and Moneysavingexpert.com – “Boiler cover need-to-knows”.

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