With the third largest insurance market in the world, according to ReportSure.com1, Brits have access to a wide selection of policies designed to protect them and their investments.
One insurance product which is highly important, but sometimes overlooked, is that of boiler insurance. According to This Is Money, the fuel used by boilers and central heating accounts for approximately two thirds of household expenditures2, making protecting this item vital.
Boilers and energy – the facts
For those wondering whether boiler insurance is a necessary product for their home it is important that they consider the facts. The energy efficiency and financial expenditure of a home will be largely dependent on the boiler which is in operation and a faulty or damaged boiler can lead to widespread damages and large bills for replacements or repairs.
In fact, according to the Energy Saving Trust, the average boiler replacement costs households £2,0003 and This Is Money state it takes approximately 6 years for a household to pay off this cost in terms of savings. Having your boiler insured can therefore ensure that you are protected against any damage or faults, making the financial implications less of a concern for homeowners.
Boiler insurance – what to consider
As with all types of insurance it is still important that you consider all aspects before selecting a policy. What is covered and how much the policy will cost will all vary and it is important that consumers make sure they get the best deal.
•Type of boiler: this could determine the type of cover you are offered and could be the perfect excuse for you to upgrade your boiler. Condensing boilers operate on an efficiency of approximately 90% whilst non-condensing boilers are only 75% efficient. This different can amount to a difference of £150 a year in energy bills according to This Is Money4, making it a lucrative change.
•Type of cover: as with all insurance policies the type of cover which you obtain can vary. Always look at what situations will be covered and which will not, evaluating the policy on this information. It is important to check that there are no exclusions or other clauses in your policy and make sure the price which you pay reflects the protection you get.
•Additional protection: simply investing in insurance to protect your boiler isn’t enough to keep your house safe and the best way to avoid damage being causes is to take preventative measures. Regular boiler servicing is an easy way to achieve this and could even save you money – as the Carbon Trust claim a well maintained boiler can save as much as 10% on bills5. Other protective measures, such as investing in a jacket for a hot water cylinder or boiler jacket, can also help prevent damage and save money. The Guardian reported that the fitting of a British Standard jacket, which costs just £12, reduces heat loss by 75% and saves households £20 a year6. Alongside this, the jacket can also prevent pipes from becoming frozen – one of the most common causes of boiler damage and heating problems.