Homeowners have been advised to ensure they understand what cover is provided by their existing or potential insurance policy in case their heating or boiler breaks down this winter.
According to research by independent financial research company Defaqto, there is a wide-ranging variation in terms of what home emergency policies offer.
The data shows there are now 163 providers in the market, offering 307 home emergency products, available as a stand-alone product from a home emergency insurer, as a standalone product from a utility supplier, as an add-on to a home insurance policy or as an add-on to a bank account.
Defaqto’s data shows that protection for boilers and central heating are the most commonly available within the market, featuring as standard in 85 per cent and 78 per cent of all policies respectively.
However, the wide range of features available, cover limits imposed and distribution channels available make this a complex area for many people to navigate.
The table below shows how cover for these core risks varies across the market.
| Product feature | % of products including feature as standard | % of products including feature as optional extra | % of products not providing any cover |
| Central heating Cover | 78 | 1 | 21 |
| Boiler breakdown | 85 | 1 | 14 |
| Annual boiler service | 17 | 10 | 73 |
| Plumbing and drainage cover | 77 | 0 | 22 |
| Water supply pipe | 75 | 3 | 21 |
| Electric supply – failure | 74 | 1 | 24 |
| Gas supply – failure | 47 | 0 | 53 |
| Home security cover | 66 | 4 | 30 |
| Roof cover | 40 | 5 | 55 |
| Vermin removal | 47 | 5 | 48 |
| Appliance cover | 11 | 2 | 87 |
| Alternative accommodation | 59 | 0 | 41 |
Anna-Marie Duthie, Insight Support Analyst for General Insurance, said:
“As understanding of home emergency cover increases among consumers, more comparisons will be made against the benefit levels on offer and the charges that are being applied. However, in our opinion there are too many product options in existence, which are more likely to confuse rather than clarify what people need.
“When purchasing or reviewing cover, homeowners should not focus on the premium alone. Although the cost of any insurance is always going to be an important factor, the features and benefits offered by a policy should always be the main consideration. In reality, someone will only ever find out how good their insurance policy is when they need to make a claim.”
