WHETHER it’s a burst pipe, broken boiler or sudden loss of power, in an emergency we need someone who can help fast.
But are home emergency cover policies worth it? This week, Rosie Murray-West investigates.
TAKE COVER?
CUSTOMERS can be covered against problems in their property, as part of a general home insurance policy or as a standalone policy from companies such as Homeserve or British Gas.
It is also possible to buy separate boiler breakdown insurance.
British Gas charges £27 a month (£324 a year) for its Complete Homecare package which protects everything from drains to home electrics.
Homeserve’s £18-a-month Heating, Plumbing and Electrics Plus service includes the issues in its title plus your boiler, security and roofing problems.
Adding emergency cover to your home insurance costs £40 to £50 a year, though these policies may have a higher excess and any claim could affect your home insurance premium the following year.
Standalone home emergency cover does not extend to any work required after a repair — just the cost of immediate assistance with the emergency itself.
IS IT WORTH HAVING?
IT depends. If you want peace of mind, can afford the cover and don’t mind reviewing it annually, it may be a good idea. But having a trusted tradesperson or insurance cover may work out cheaper in the long term.
Before taking out a home emergency policy or an add-on to your existing home insurance, check what level of cover you have already.
Compare prices and see if it works out cheaper for your insurance firm to add this cover on or to buy a separate policy.
If you can afford the cover, it may mean you get your problem resolved quickly and without stress — but be prepared to switch or haggle after the first year.
Don’t just automatically renew as the price will keep rising.
And as always when buying insurance, compare what the policy covers as well as its cost.
Check the maximum claim amount and think about whether or not that will be sufficient.
Prevention is also better than cure, so regular home maintenance including boiler servicing can help prevent home disasters.
Make sure whoever carries out your boiler servicing is on the Gas Safe Register. You may find having the number of a trusted tradesperson to hand is a more cost-effective solution than buying insurance cover as home emergencies are rare.
WILL INSURANCE COVER ME?
“IF an insurer can wriggle out of a claim, they will,” consumer expert Scott Dixon says.
He urges consumers to read the terms and conditions and small print of any home emergency policy.
Common excuses for not paying claims include if a boiler is too old — which can mean as little as five years old — or if you cannot prove it has been serviced annually.
The Financial Ombudsman Service has had complaints of insurers refusing to pay out because they say a problem is not an emergency.
In one case, a company told an 87-year-old woman she was not covered for a boiler breakdown when a pipe outside froze.
The insurer claimed that because the pipe was uninsulated, the damage would have happened anyway, so it wasn’t a sudden emergency.
The ombudsman upheld the woman’s complaint and made the insurer pay compensation.
The FOS says that although customers sometimes fail to seek approval from insurers for emergency works, businesses also need to be clear about which claims will be covered before work begins.
A spokeswoman says: “Consumers should reach out to their insurer when a home emergency occurs and ensure it has the chance to properly assess the claim and determine who should carry out the works if it’s covered.”
“If a consumer is unhappy with the service they receive, or how their complaint has been handled by their insurer, they can contact our free, independent service and we can see if we can help.”
A battle to get my leak paid for
DIGITAL content creator Jen Mellor was put on to the home emergency cover team at Esure after a leak from her shower caused by a blocked pipe earlier this year.
She says: “A plumber was sent out but all they cover is finding the leak and stopping it.
“We had stopped using the shower so it didn’t leak any more.”
Jen, 43, from Mansfield, pays £292 a year in home insurance including a £34.99 a year charge for home emergency cover.
Mending the shower itself was not classed as an emergency as Jen had other bathroom facilities in the house, so the home insurance team could not help.
But the emergency plumber had left holes in the ceiling trying to trace the source of the water.
Jen says: “We then went backwards and forwards for a couple of weeks trying to ascertain who would pay.”
Her home insurance eventually covered the works, but she does not know whether this will affect her premium when she renews her cover.
Jen adds: “It was a very long way around to get very little done.”
Apps unfair for elderly
ELDERLY and vulnerable shoppers are paying more on the high street because they do not have access to apps or the internet, The Sun has found.
More firms are offering specialised prices and offers for loyalty scheme members.
But many of these super savings are only available through apps you must download to your smart-phone or by signing up online.
For example, Asda customers can sign up for its Rewards app and earn “Asda Pounds”, which can be turned into vouchers to reduce the price of your shopping.
If you do not have a smartphone or device compatible with downloading the app, however, you can’t take advantage of the offers.
It’s a similar story for Lidl, where you will be rewarded if you download its Lidl Plus app.
Fast food fans will find they are unable to tap into major savings at McDonald’s without its app. And you will need to download the Greggs app to take advantage of its free rewards.
Critics say people who have trouble accessing the internet or do not have pricey gadgets are, in effect, being penalised by high street shops.
Vix Leyton, consumer expert at hotukdeals and host of False Economy podcast, said: “Large sections of society have been digitally excluded.
“Retailers’ app-exclusive deals will be yet another slap in the face for those people who need these discounts most during the cost-of-living crisis.”
Workers’ £3.5bn tax back
ALMOST 5.5million workers were refunded a total of £3.57BILLION in overpaid tax last year, a Sun freedom of information request to HMRC found.
The average overpayment was £661.
Having the wrong tax code is the main reason workers overpay, accounting company RSM UK said.
But even those who check their code and realise it is wrong may not be able to get it sorted quickly, as the taxman is often overwhelmed with demand.
Customer service at the government department was found to be at an all-time low earlier this year, with phoneline waiting times the worst affected.
This is likely to have contributed to the increase in tax repayments by HMRC, Paul Slokan, associate director at RSM UK said.
At the end of each tax year on April 5, HMRC sends out P800 letters to anyone who has overpaid or underpaid tax.
There are several reasons why you might be on the wrong code, including if you have started a new job and HMRC has not received your income details in time.
You can check your tax code on your online personal tax account, via payslips, or on the HMRC app.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “It’s a relatively straightforward process and this money is rightfully yours, so make a claim as soon as you can.”
P.S.
Buying cheap white goods may be a false economy.
When it comes to replacing your washing machine, fridge or dishwasher do not automatically go for the cheapest – you could spend more in the long run.
Read reviews and check its energy-efficiency rating.
