New analysis by Defaqto reveals that of the 390 home contents insurance policies currently on the market, just 21% include cover for home emergencies, such as boiler breakdown, as standard.
Buildings insurance doesn’t offer much of an alternative, with only 24% of the 371 policies currently on the market providing cover for home emergencies, as standard.
For those looking to protect their homes this winter, approximately half of all contents and buildings insurance policies currently on the market offer ‘home emergency’ cover as an optional add-on; 176 out of 390 (45%) of contents insurance policies, and 183 out of 371 (49%) of buildings insurance policies.
| Home Contents Policies | Proportion | Level of cover available |
| 134 | 34% | do not provide cover |
| 80 | 21% | provide cover as “standard” |
| 176 | 45% | provide cover as “optional” |
| Home Buildings Policies | Proportion | Level of cover available |
| 98 | 27% | do not provide cover |
| 90 | 24% | provide cover as “standard” |
| 183 | 49% | provide cover as “optional” |
Another alternative is to purchase a separate ‘standalone’ home emergency insurance.
Currently, there are many adverts for boiler breakdown insurance, which specifically cover boilers and should not be confused with home emergency insurance:
Boiler breakdown insurance is specifically designed to protect a boiler against the cost of future breakdown. Primarily these products cover the cost of any repairs to a boiler to get it up and running again but not necessarily replace it if it is broken. A large proportion include an annual boiler service. With a new boiler costing anywhere upwards of £500, 54% of policies available (28 out of 52) will cover costs of at least £500 or more towards a replacement boiler, with 11 policies (21%) offering unlimited cover towards replacement. However, there will be exclusions based on the age and power output of the boiler.
Home emergency insurance covers a range of emergencies that affect the home. It is designed to help people who have been hit by an emergency to make their home safe again or reinstate essential services. It offers more comprehensive cover than boiler breakdown insurance and can provide some peace of mind heading into the winter months when homes are at risks of central heating failure, burst pipes, electrical failure and roof damage caused by extreme weather.
For example, homeowners who find that their home is flooded due to burst pipes or extreme weather conditions, may find that with home emergency insurance they will be covered for alternative accommodation, should their home be under water. Of those policies currently on the market, 54% (186 of 343) provide alternative accommodation for an unlimited number of nights. However, costs covered can be low. 11% of these policies (37 out of 343) will only provide a total maximum of £100 – £200 towards the cost of alternative accommodation. 49% (168 out of 343) will cover a maximum of £250 – £500, with 11% (37 out of 343) offering £750 – £3000 towards accommodation costs. Only 1% (4 out of 343) will cover unlimited costs towards alternative accommodation.
Home emergency insurance is sometimes added on to home contents and buildings insurance and packaged bank accounts or offered through utility providers, so it is worth checking whether there is already cover in place and checking for any exclusions, before buying a new policy. It can be bought as a standalone product and there are currently, 104 such policies available in the market place.
Brian Brown, consumer finance spokesperson at Defaqto, said: “As the temperature starts to drop, having hot water and heating becomes a higher priority again. Modern boilers are expensive and the cost of having to replace one can be a nasty shock. If you don’t have the funds to pay for this, then a boiler breakdown policy that includes boiler replacement could be a good option for you.
“Homeowners looking for a more comprehensive cover may find a home emergency policy provides greater comfort. However the extent of cover can be limited. So it’s always worth checking the market to find a policy that’s right for your circumstances.”