central heating home cover..

[Andy Allen]

I have allways had home insurance for my boiler and central heating, first it was with british gas but after being let down by them we switched to e-on who were even worse. I don't like the thought of not having any cover for my heating system however I find these big companys are a complete let down and a waste of money.....

are there any companys out there that cover your heating system that aren't a complete waste of money, or would it be better to use a local trader...

 

[AWheating]

A good local gas safe engineer is best. I can understand the peace of mind an insurance cover can bring, but most people pay a few hundred a year with no reason to call them out. After a few years without a call out you may even have saved enough to cover the cost of a new boiler. And there's always the option of a fixed price repair from a manufacture.

This is is one of the reasons extended warranties are so popular now, some manufacturers give 10 years, which can save you loads of money compared to taking out insurance.

 

[Ermintrude]

Save up and just have some money in bank. All schemes are a con. A new boiler comes with upto 10 years manufacturer warranty. A new boiler generally will cost you half of what u pay in insurance over 10 years! Plus it will be more efficient.

 

[IDCHAPPY]

2 wonderful and spot on comments from my very knowledgeable colleagues above

 

[TBServices]

Set up a standing order into a savings account for the same amount you were wasting on BG cover. Call it the rainy day fund and it's there to cover all eventualities.

 

[stevetheplumber]

all care plans are savings without interest, not that theres much interest around at tthemoment

 

[Ray Stafford]

all care plans are savings without interest, not that theres much interest around at tthemoment

Spot on Steve. It certainly shouldn't be thought about like insurance.

By definition, any insurer has to take in more in premiums than they pay out in claims, and is therefore an inherently poor bet for the insured. Insurance only makes sense if it is mandatory (like car insurance) or if the consequences of the event against which one is insuring is both catastrophic and cannot be met by other forms of planning. For example, most of us couldn't possibly afford to save enough money to cover our house burning down, so fire insurance makes sense.

However, boiler breakdown is entirely predictable, (and therefore subject to normal planning) and although inconvenient, could not be described as catastrophic in the same way as a car crash or a house fire. Therefore it makes much more sense to do what TBServices suggests, and just put it into a savings account. Although you won't get much interest the odds are in your favour. And it may be that the unfortunate occurence that befalls you as a property owner is not a broken boiler, but a leaky roof. Having the cash on hand gives you much more flexibility.