Central Heating Insurance or Savings Account?
By David Holmes on October 26, 2009
Although today’s central heating boilers conform to strict regulations, undergo annual safety inspections and are generally built to last, it is common for parts to break down or become faulty.
Moreover, central heating systems generally are prone to the odd leak or blockage but when central heating systems experience problems the effects can be disastrous, with flooded homes and potentially unsafe gas appliances wreaking havoc. Thus, it is understandable that many customers choose to indemnify their properties against such mishaps by taking out one of the many gas, plumbing and electricity insurance policies that are available.
Indeed, it is commonly perceived that an insurance policy, which typically requires monthly instalments or an annual fee to be paid, is the cheaper and more convenient option to having to call up a private Gas Safe engineer, electrician or plumber when something goes wrong. To all those customers who have experienced cowboy private traders, the insurance policy option is an attractive one if only to ensure that trained professionals will carry out the work within an agreed time. Furthermore, whilst no policy will cover every possible central heating related hazard, there are comprehensive options that take care of most problems at no additional cost.
However, a recent article published in the Guardian’s online service suggests that British Gas HomeCare policyholders would be better off saving their money in a savings account than continuing with their policies, which are set to rise by up to 50% during the coming months. Indeed, Which? research shows that 90% of households would profit from letting their policies expire (beware of automatic renewals, though) and setting aside the premium funds in the event of problems arising.