Home emergency cover is a type of insurance designed to help when things go suddenly and unexpectedly wrong in your home, such as a boiler breakdown in the middle of winter or a burst pipe flooding your kitchen. It promises fast access to an engineer and covers the cost of emergency repairs. But is it good value for money, or would you be better off putting the premium into a savings pot? Here is what you need to know to make an informed decision.
What Does Home Emergency Cover Include?
Most home emergency cover policies include a core set of emergencies. Boiler breakdown is the most commonly claimed-for event and is the primary reason many people take out this type of cover. Plumbing emergencies, such as burst pipes, leaking water tanks, and blocked drains that are causing or about to cause damage to your home, are also typically covered. Electrical emergencies where a complete loss of power occurs, or where there is an immediate safety risk, are included in most policies.
Many policies also cover pest infestations, including rats, mice, wasps, and hornets, where the infestation poses a health risk or is causing damage. Lost or stolen keys, or a broken lock that leaves your home insecure, are covered under the security category, with the provider sending a locksmith to gain entry and secure the property. Some higher-tier policies extend to cover roof damage that is allowing water to enter the property, and a few even include alternative accommodation costs if your home becomes uninhabitable due to a covered emergency.
How Much Does It Cost?
Home emergency cover typically costs between 100 and 200 pounds per year, depending on the level of cover, the provider, and the age and type of your property. Basic cover focusing on boiler breakdown and plumbing emergencies is at the lower end, while comprehensive cover including electrics, pests, roofing, and alternative accommodation is at the higher end. Some home insurance policies include emergency cover as an optional add-on for a modest additional premium, which can be cheaper than buying a standalone policy.
The main providers in the UK market include British Gas HomeCare, which is one of the most well-known but also one of the most expensive, as well as HomeServe, 247 Home Rescue, and various policies offered by insurance providers such as Aviva, Direct Line, and Admiral. Your energy supplier may also offer boiler and home emergency cover, and it is worth comparing their prices against standalone specialists.
What Is Typically Not Covered
The exclusions in home emergency policies are where many customers become frustrated, so it is vital to read the small print before buying. Pre-existing faults are universally excluded, meaning that if your boiler was already faulty when you took out the policy, any subsequent breakdown related to that fault will not be covered. Most policies have a waiting period of 14 to 30 days after purchase before you can make a claim, specifically to prevent people buying cover only when they already know something is wrong.
General wear and tear is not covered. If your boiler breaks down because it is old and parts have gradually worn out, some insurers may argue this falls under wear and tear rather than a sudden breakdown, though the line between the two can be contentious. Damage caused by your own neglect, such as failing to have your boiler serviced annually, may also give the insurer grounds to reject a claim. Cosmetic damage, slow drips, and minor inconveniences that do not constitute a genuine emergency are excluded from most policies.
Claim Limits and Excess
Most home emergency policies have a claim limit per incident, typically between 500 and 1,000 pounds including parts and labour. This is usually sufficient for emergency repairs and temporary fixes, but it may not cover a full boiler replacement if your boiler is beyond repair. Some policies also have an annual claim limit, restricting the total amount you can claim across all incidents in a year. Check whether your policy has an excess, which is the amount you pay towards each claim before the insurer covers the rest. Excess amounts on home emergency policies are typically between zero and 100 pounds.
The Self-Insurance Alternative
One approach favoured by personal finance commentators is to self-insure by putting the equivalent of the annual premium into a dedicated savings account. If you save 150 pounds per year, after five years you would have 750 pounds set aside, which is enough to cover most single emergency repairs. The advantage of this approach is that if you do not have an emergency, you keep the money, whereas insurance premiums are gone whether you claim or not. The risk is that a major emergency in the first year or two, before you have built up a sufficient fund, could leave you out of pocket.
When Home Emergency Cover Is Worth It
Home emergency cover tends to be most worthwhile for owners of older properties where the boiler, plumbing, and electrics are more likely to develop problems. If your boiler is more than eight to ten years old and you do not have significant savings to fall back on, the peace of mind of knowing you can get an engineer out quickly without worrying about the cost can be genuinely valuable. For first-time buyers who may have stretched their finances to purchase the property and have little in reserve for unexpected repairs, cover can provide a helpful safety net during the first few years of ownership.
Conversely, if your home is relatively new with a modern boiler still under manufacturer's warranty, and you have a healthy emergency fund, paying for cover may not represent good value. The premiums you save can go into your own emergency fund, giving you flexibility to use the money however you see fit if and when a problem arises.
Tips for Choosing a Policy
If you decide that home emergency cover is right for you, compare at least three or four providers before committing. Check the claim limit per incident and per year, the list of exclusions, whether an annual boiler service is included, and the excess amount. Read reviews from existing customers to gauge how responsive the provider is when you actually need to make a claim. Fast response times are arguably the single most important feature of emergency cover, as the whole point is getting help quickly when you need it most.