Let’s look first at the costs for boiler cover…
If you take out the cheapest boiler cover policy above, you’ll spend £23.88 a year. Then you need to add on the cost of a one-off boiler service, which is £72, according to Which?. But the cost can vary depending on where you live, the type of boiler service you pay for and which firm does the service. So the real cost of a one-off service might be anywhere between £70 and £135.
For argument’s sake, let’s assume a boiler service costs £100.
So you’ll have spent £23.88 + £100 over the year = £123.88
Boiler repairs are expensive – and new boilers even more so. According to uSwitch research, the average boiler repair bill comes in at £270. And one in five homes are unlucky enough to experience a boiler breakdown every year.
So if your boiler breaks down and you make a callout, you’ll need to pay an excess. For the policy above, this is £95. So your yearly total comes to £218.88.
And the good news – assuming you don’t need any new parts – is that you will have saved just over £50 for a standard boiler repair.
Looking at the most expensive boiler cover available on the market, the costs work out as follows:
£20.45 x 12 months = £245.40
This policy includes a free boiler service and there’s no excess to pay. So again, you’ll have saved – assuming it’s a standard repair that costs approx. £270 and you don’t need any new parts – just under £25.
These examples also demonstrate that it’s worth diving into the small print. Since the £1.99 policy seems far cheaper when you compare just the monthly cost. But add in the excess and boiler service, and there’s far greater discrepancy between the overall costs of the two policies if you need to make a claim.
This is particularly true if you’re unlucky to need a boiler replacement. For a decent boiler, you can expect to pay from £1,500 up to more than £3,000.
With the cheapest policy on the market (above), there’s no financial contribution towards the cost of a new boiler. So you’ll need to cover the cost in its entirety (unless you’re eligible for the government’s ECO scheme – in which case you might be able to get a grant to help). While with the most expensive policy (above), you get a £250 contribution towards the cost of a new boiler.
What about home emergency insurance?
Should you have another type of home emergency, the comparison cost varies depending on who you need to call to fix it:
- For example, if you need an emergency plumber, you can expect to pay between £100 and £180
- For an electrician, the emergency cost is typically £80 or more
- Replacing some roof tiles – to avoid a leak – could cost between £100 to £200
- For a pest infestation, you’re looking at spending £150 to £200 for a day – but if it’s to remove a single wasp’s nest, it could be as low as £55
- And an emergency locksmith costs about £65 an hour.
So it’s worth considering what type of emergency you’re most worried about occurring – and the likelihood of you making a claim. There are also alternatives to consider…