Families trying to slash their bills this winter are being cautioned that certain money-saving measures could void their insurance coverage. Turning off heating completely, failing to maintain minimum indoor temperatures, or skipping boiler servicing could invalidate home insurance, according to financial information firm Defaqto, which could result in households being hit with expensive repair bills.
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 observed that some insurers have introduced stricter conditions for “escape of water” claims during the colder months, requiring homeowners to maintain their heating above a specified minimum temperature.
She added: “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.”
In October, Defaqto reviewed standard boiler, home emergency and home buildings insurance products across the UK market. The analysis found that 82% of boiler and home emergency insurance policies require proof of a boiler service, either within a set period, typically between 12 and 36 months or in line with the manufacturer’s maintenance guidelines.
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 noted that the most common exclusion period was 14 days, although some policies were as short as 24 hours or as long as 90 days. According to Defaqto, more than half (57%) of policies include financial support for a replacement boiler if the existing one is beyond repair.
The level of contribution varied from £250 to £2,500, or even covered the full cost of a new boiler when purchased through the insurer’s approved supplier. Typically, the policy must have been active for a minimum period before a claim can be made, though Defaqto found that many only require 30 days or less.
Policy terms and conditions differ, so individuals should examine them thoroughly, Ms Pilley advised. 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.”
