Households looking to cut heating bills warned about costly insurance mistakes

Households attempting to cut their bills this winter are being warned that some attempts to save costs could end up invalidating their insurance.

Switching the heating off entirely, failing to maintain a minimum indoor temperature, or neglecting to service a boiler could be steps that risk invalidating home insurance – and leave households facing costly repairs if something goes wrong, financial information business Defaqto said.

Angela Pilley, a home insurance expert at Defaqto, said: “Persistently high winter fuel costs are forcing many people to make tough choices about their household budgets. But a short-term saving, like turning your heating off, can quickly become a costly mistake if pipes freeze then burst and cause serious water damage.”

Ms Pilley said that some insurers have tightened their terms around “escape of water” claims during the colder months, specifically requiring homeowners to keep their heating above a certain minimum temperature.

She said: “Some insurance policies now require minimum heating levels to be maintained if you are away for only a few days and some even when the property remains occupied. If a pipe bursts because the temperature wasn’t maintained, you may find you’re not covered.”

Defaqto analysed standard boiler and home emergency insurance products and home buildings insurance products across the UK market in October.

It found that 82% of boiler and home emergency insurance policies require proof of a boiler service, either within a set period – usually 12 to 36 months – or in line with the manufacturer’s maintenance schedule.

Additionally, over a third (35%) of policies will not cover boilers beyond a certain age, such as 10 or 15 years, with a small proportion limiting cover to boilers which are less than nine years old.

Ms Pilley said: “If you’re considering taking out boiler cover this winter, it’s worth noting that 83% of products include an exclusion period at the start of the policy meaning you can’t make a claim if something goes wrong during that time.”

She said the most common exclusion period was 14 days, but some were as short as 24 hours or as long as 90 days.

More than half (57%) of policies will contribute towards a replacement boiler if the existing one breaks down beyond repair, Defaqto said.

Contributions were found to range from £250 up to £2,500, or even the full cost of a new boiler when supplied through the insurer’s own provider.

Typically, the policy must have been active for a minimum period, but many products require 30 days or less, Defaqto said.

Terms and conditions of policies will vary, so people should check them carefully, Ms Pilley said.

She added: “A few simple precautions such as maintaining your heating and servicing your boiler will make all the difference in keeping your cover valid and protecting your home through winter.”

Louise Clark, manager of general insurance policy at the Association of British Insurers (ABI), said: “As the cold snap bites and temperatures tumble, a few simple precautions can help you avoid the disruption and distress of frozen or burst pipes this winter. Insurers are ready to help if the worst happens, but prevention is always better than cure.

“Using anti-frost settings on smart thermostats, keeping your heating on a timer or on at a certain level, can help to prevent burst pipes.

“And if your home will be unoccupied for some time, be sure to inform your insurer, and consider setting your heating on a timer or turning off the water to reduce the risk of pipes freezing and bursting. Don’t forget to take a moment to read your insurance policy’s terms and conditions so you know exactly what you’re covered for.”

Here are some suggestions from Defaqto to avoid costly call out and repair bills:

1. Always check the terms and conditions of your insurance policies. For boiler and home emergency cover look out for boiler servicing requirements, age limits and upper limits on power output.

2. If you plan to leave your home unoccupied then check if your home insurance requires you to maintain your heating at a minimum temperature during the time you are away.  Even if this is not required, doing it could still reduce the risk of pipes freezing and bursting.

3. If you have a smart thermostat, many will have an anti-frost setting to keep your home heated to a very minimal temperature that will stop pipes from freezing.

4. If you do not have a smart thermostat, most radiators will have a setting with a snowflake symbol to allow minimal water flow between pipes and radiators to prevent freezing. This may also be used if you only want to heat certain rooms.

5. Consider setting the heating on a timer if you are going away.

6. When changing the boiler remember to check that your existing boiler or home emergency policy will cover it.

7. If the boiler has been purchased in recent years, it is also worth checking what cover the manufacturer gives as standard under the warranty and checking for exclusions.