Getting the right boiler insurance can satisfy the cost of replacing if it breaks, and guarantees that your tenants are never without heating. Here is a guide on what you need to know about boiler cover.
What is boiler insurance?
It covers the expenses for replacing or fixing your boiler if it breaks down, and any plumbing or electrical problems. It can be included to your landlord insurance or taken out as a separate cover.
It also includes a Gas Safety Inspection and an annual boiler service, which you are legally required to have each year.
You are tasked with ensuring that the heating in your property works, and repairs or replacement can be costly if you do not have cover.
You can know more regarding your responsibilities as a landlord on the Tenancy Agreement Service website.
What cover can you receive?
Three ways to insure your boiler are:
- Boiler only, which only covers the boiler and its controls. It is a cheaper choice. However, it would not cover repairs to your radiators or pipes.
- Boiler and central heating, which protects your heating system including radiators, central heating pumps, and pipes.This is the most expensive option. However, it offers the best cover for your boiler and heating.
- Home emergency, which gives wider cover for problems at your property. This is normally the cheapest option. However, claims are limited to £500, which would only cover minor repairs.
Will the age of your boiler matter?
You may find it hard to insure your boiler if it is more than seven years old.
Some insurers need an inspection to be carried out by a Gas Safe registered engineer before they agree to cover, and others may not be able to insure you at all.
Think about buying a new boiler if yours is too old to insure, as this could save you money long term.
How much does it cost?
The cost varies depending on the level of cover you receive, but boiler insurance ranges from £5 per month to around £20 per month.
Replacing your boiler can cost as much as £4,000, so getting the right insurance could help you save money on the price of repairs or replacement.
Do you need it?
Boiler insurance is not required. However, it could help you cover the costs of:
- Yearly services and Gas Safety inspections, which are required by law
- Replacing or Fixing your boiler, if your heating stops working
Review to check if you already have cover elsewhere.
You could also consider self-insuring alternatively, by placing money into a savings account each month to cover the expense of boiler repairs. However, you may not have sufficient money set aside in time if things go wrong and would have to find a way to cover the rest.
How can you find cover?
There are two principal ways to look for a boiler insurance cover for your rental property:
- Compare insurers: Most landlord insurers extend boiler cover as part of their packages. You can also find stand-alone cover by comparing boiler insurance deals.
- Energy supplier: Most electricity and gas companies offer boiler insurance with your energy deal. This is a comfortable way to get coverage but may not be the cheapest option.