As the snow falls across the country, independent financial information and ratings experts, Defaqto, have found that less than a fifth of home contents policies (19%) include cover for home emergencies, such as boiler breakdown, as standard.
Buildings insurance doesn’t offer much of an alternative, with less than a quarter (22%) of the 311 policies currently on the market providing cover for home emergencies.
For those looking to protect their homes this winter, approximately half of all contents and buildings insurance policies currently on the market offer ‘home emergency’ cover as an optional add-on; 165 out of 337 (49%) of contents insurance policies, and 166 out of 311 (53%) of buildings insurance policies.
Angela Pilley, insight consultant at Defaqto, said: “With much of the country under snow this morning, having hot water and heating becomes a higher priority again.
“With the cost of energy a concern for many, any additional unexpected costs could prove problematic.
“A boiler repair or replacement can be extremely costly and if you don’t have the funds to pay for this, then a boiler breakdown policy may be a good option for you.”
Currently, there are many adverts for boiler breakdown insurance, which specifically cover boilers and should not be confused with home emergency insurance.
Boiler breakdown insurance is specifically designed to protect a boiler against the cost of future breakdown.
Primarily these products cover the cost of any repairs to a boiler to get it up and running again but not necessarily replace it if it is broken.
Home emergency insurance covers a range of emergencies that affect the home.
It offers more comprehensive cover than boiler breakdown insurance and can provide some peace of mind heading into the winter months when homes are at risks of central heating failure, burst pipes, electrical failure and roof damage caused by extreme weather.
For example, homeowners who find that their home is flooded due to burst pipes or extreme weather conditions, may find that with home emergency insurance they will be covered for alternative accommodation, should their home be under water.
Of those policies currently on the market, 64% (185 of 287) provide alternative accommodation for an unlimited number of nights. However, costs covered can be low.
10% of policies (29 out of 287) will only provide a total maximum of £100 – £200 towards the cost of alternative accommodation.
53% (152 out of 287) will cover a maximum of £250 – £500, with 15% (42 out of 287) offering £750 – £3000 towards accommodation costs.
Less than 1% (2 out of 287) will cover unlimited costs towards alternative accommodation.
Pilley added: “Extreme winter weather can also bring unexpected and unpleasant events such as high winds, flooding or very icy conditions which can lead to homes losing roof tiles, frozen pipes bursting or a breakdown in heating systems.
“Those homeowners looking for a more comprehensive cover may find a home emergency policy provides greater comfort, however the extent of cover can be limited, so it’s always worth checking the market to find a policy that’s right for your circumstances.”
