Boiler, heating, plumbing and/or electrical cover recommendation

[chukwe]

I moved into a new house 2 months ago and was wondering whether to get cover for Boiler etc.

Which company is the best? BG Homecare, EDF etc?

[BackforGood]

My advice would be to look at what a couple of companies charge, then just transfer that amount to a savings account and pay a bill as an when you need to. I've never spent a tiny fraction of what those policies cost actually getting services and repairs done across yers and years of home ownership.

[chukwe]

@BackforGood

My advice would be to look at what a couple of companies charge, then just transfer that amount to a savings account and pay a bill as an when you need to. I've never spent a tiny fraction of what those policies cost actually getting services and repairs done across yers and years of home ownership.

What if you have a major breakdown, wouldn't it cost a lot? Will the cover help?

[BackforGood]

Well, any insurance is a gamble - if you think about it, you pay in a lot of money and then benefit if you need to claim.
You then risk assess the consequences of not having insurance.

So, I hate to think what I've paid out in house insurance over the decades without any major claim BUT should I have a disaster that means my house were destroyed, I couldn't ever afford to replace my house without insurance, so I continue to pay it.

Car insurance the same (plus, with car, of course, it is the law)

OTOH, boiler contracts, in my experience cost a lot more to pay out for than you are ever likely to need to claim back. You'd probably find, when reading the small print, that major work would be excluded from their cover anyway, but do the maths of paying out £20 (or whatever it costs now per month) for years, against what you actually pay out for repairs. Last couple of times I've called someone out, I paid £100 and £80. That was over a space of about 4 years. SO I've spent £180 over 4 years on repairs and £280 (£70 per year) on an annual service rather than over £900 in monthly fees. Obviously there is a chance that you will suddenly need to claim before you've built any savings, but, would putting £100 is on a credit card break you ?

It is all about risk assessment. If you didn't have cover, and needed to call out someone, could you 'borrow' that from somewhere if you didn't have enough saved (be that a savings pot, a credit card, an over draft, or somewhere else). So, for a boiler repair, most people could, but for a house replacement, most people couldn't.

[chukwe]

Thanks @backforgood. What about the Emergency Cover that comes with home insurance as add-on?

[BackforGood]

Well, again, it is down to your circumstances.
I don't buy it. a) I've never had to use it in 30 yrs of home ownership and my parents never used it either for the first 25 odd years of my life, so you risk assess from that point of view, ten, I live in the same place I grew up. I have a phone book full of reliable trades people and a huge local community that I am part of if I needed someone I didn't have - it would just take a quick ask either on Facebook or in my road's WhatsApp group or colleagues, friends, family and I'd be able to source what I needed. I guess if you have moved right across the country and don't know anyone, or you are one of the people I see on MN who say "they have no friends" or if you aren't part of any communities, then you would be in a different boat.

As I say - this is just my opinion, as a random stranger (to you) on the internet. I'm fairly sure someone will have a tale of needing to claim on one of these contracts after the first month's payment. However, they are companies that are there to make money - they know the odds of ever being needed as they take the money each month.

[tanstaafl]

Is it a brand new house OP ?
If yes, the boiler should have a lengthy warranty from the manufacturer.

[chukwe]

@tanstaafl

Is it a brand new house OP ?
If yes, the boiler should have a lengthy warranty from the manufacturer.

I just moved into the house almost 2 months now. It's a 1940s building but beautiful and well kept by the previous owner.

I'm not worried about the boiler but the pipes which look rusted and old. I feel it may bust anything soon. That's what I'm worried about.

[Geekygeek]

If a pipe were to burst (rather unlikely) emergency cover would just turn the water off for you in the first instance. House insurance would cover any consequential losses (damaged carpet, etc).

Policies are rarely worth the cost. What cost peace of mind?

[TobyHouseMan]

The shame of these policies is people think 'we're covered if the boiler goes wrong.' This is not always the case. One very common example is 'The boiler is obsolute and parts are no longer available.' In this case you won't get your boiler fixed and will be forced to install a new one, AT YOUR COST. Even if you can get the parts, the company will only use their parts suppliers. BG are famous for this.