Landlord Boiler Cover Essentials: What Every Landlord Needs to Consider

In the UK, renting a home is quite a popular practice. Per applicable laws and regulations, landlords are responsible for maintaining rented properties that are safe, compliant with regulatory requirements, and habitable at all times. Keeping boilers in perfect working condition is one of the most important responsibilities of landlords.

Boilers are meant for heating and hot water supply in taps and showers. Only a well-maintained, regularly serviced boiler can ensure a consistent heating and hot water supply throughout the colder months. In the event of a prolonged boiler breakdown, the landlord may face legal issues, especially if the tenants escalate the complaint. A landlord boiler cover is crucial for trouble-free boiler performance. It is also important for landlords in terms of cost savings and peace of mind. A good boiler cover is vital to effective rental property management for landlords. But the question is: why is a boiler cover so important for landlords, and what should they know when getting one?     

This blog explains the essentials of landlord boiler cover and what they need to consider.

Boiler Cover – An Insight

Although often confused with boiler insurance, a “Boiler Cover” is a different thing. It is essentially a service contract, structured as an insurance policy, exclusively for the maintenance and service of a boiler. It is neither boiler insurance nor home insurance; it is a service contract specifically designed for boilers and central heating systems, sometimes also including associated plumbing work.

What Is Included In A Boiler Cover?

A typical boiler cover essentially includes the following works.

·         Troubleshooting of a boiler after breakdowns, including necessary repair work.

·         Cost of parts repair and replacement, along with labor charges.

·         Repair and maintenance of the central heating system.

·         Repair and maintenance of radiators, pumps, valves, and controls can also be included in the boiler cover. However, it is entirely optional, not a compulsory part of a boiler cover.

What Is Not Included In A Boiler Cover?

The following items/work are usually not a part of the boiler cover.

·         An annual gas safety inspection/certificate (CP12) is not included in boiler cover, although it is an essential responsibility of landlords. Landlords must arrange it themselves, outside the boiler cover.

·         Servicing of boilers, if not specified in the cover.

·         Any known faults in the boiler are not usually included in the boiler cover.

·         High-pressure boilers are also not generally included in a boiler cover, unless specifically included in the plan.

Importance of Boiler Cover For Landlords

Heating and hot water are among the most essential items of a rented home in the UK, especially during the winter season. No home can be rented out without these basic facilities. It is the prime responsibility of landlords to maintain the boiler in working condition, ensuring an uninterrupted heating and hot water supply.

A boiler cover is therefore essentially required to keep the home habitable, when it comes to heating and hot water supply in taps and showers. A boiler cover plays an important role in keeping the boiler in working condition throughout the winter and autumn.

·         Heating and hot water will be disrupted in the event of a boiler breakdown, making the home uncomfortable or even unlivable.

·         A malfunctioning boiler can cause inconsistent heating.

·         In the event of a prolonged or recurring boiler breakdown, tenants may report it to the relevant authorities, which could result in legal consequences for the landlord.

·         Tenants may also withhold rent if the boiler problem persists.

·         Any delay in fixing the boiler issues can also attract legal disputes for landlords.

A proper boiler helps landlords avoid such occurrences. It can also protect landlords from potential legal consequences by way of timely repair and removal of the boiler.

Key Difference Between Boiler Insurance And Boiler Cover

Boiler insurance and boiler cover are often confused with each other. Sometimes these are even used interchangeably. But these are different in nature and extent of coverage.

Here is a summary of key differences between a boiler cover and boiler insurance:

·         Scope of Coverage - A Boiler Cover typically includes repairs on a need basis, and sometimes maintenance of the boiler is also included. On the other hand, Boiler Insurance provides comprehensive coverage, including parts and labor, and, depending on the policy scope, may also include outright replacement.

·         Suitability - A Boiler Cover is suitable for landlords who need the removal and repair of faults urgently. Boiler Insurance, on the other hand, provides comprehensive, deeper protection for boilers.

·         Cost - A Boiler Cover costs less, whereas Boiler Insurance might be more expensive.

·         Extent of Benefits - A Boiler Cover provides limited benefits, whereas coverage under a Boiler Insurance policy is more extensive.

·         Coverage Providers - A Boiler Cover is offered by a mix of companies, including General Insurance Companies, Specialized Insurers for boilers, Utility/Energy Supply Companies, Dedicated Home and Boiler Cover Providers, Boiler Manufacturing Companies, and Maintenance and Service Providing Contractors. By contrast, Boiler Insurance is only provided by General Insurance Companies and Specialized Boiler Insurance Companies.  

Legal Responsibilities Of Landlords Despite A Boiler Cover

A boiler cover does not absolve a landlord from some of the basic legal responsibilities. These may include:

·         Annual Gas Safety Inspection/Certificate (CP12)

The Gas Safety (Installation and Use) Regulations 1998 legally require landlords to arrange an annual gas safety inspection of all gas appliances in their rented properties. This can only be conducted by a Gas Safe-registered engineer. After completion of the gas safety check, the engineer issues a gas safety certificate, also known as CP12.

This legal responsibility must be fulfilled by landlords even if they have a boiler cover because a boiler cover does not include the annual gas safety check and issuance of a CP12. The landlords have to arrange this activity separately, out of boiler cover.

·        Fitness For Human Habitation

The Homes (Fitness For Human Habitation) Act requires that all rented properties be maintained to a minimum standard to ensure fitness for human habitation. If a home lacks a fully functional heating system, it will be considered a violation of this important regulation.

·        Gas Work Must Be Conducted By A Gas Safe Registered Engineer

The Gas Safety (Installation and Use) Regulations 1998 also require that all installation, maintenance, and servicing of a gas appliance be carried out by a Gas Safe-registered engineer. A boiler is essentially included in it. Hence, it is the legal responsibility of landlords to ensure that new boiler installations are carried out only by a Gas Safe-registered engineer.

Landlord Boiler Cover – Types And Scope

There are four types of boiler cover. Landlords can select any of these boiler covers, based on their requirements and the extent of coverage available under each policy.

1.     Standard Boiler Cover

A standard boiler cover includes the following:

·         Only repair costs are covered under it.

·         Call-Out Fees.

·         Limited coverage is available for parts and labor under this boiler coverage.

2.     Comprehensive Boiler Cover

It includes:

·         Repairs and replacement of parts.

·         Reduced or even no call-out charges.

·         Central Heating System parts are also included.

3.     Accidental Damage Boiler Cover

This type of boiler cover provides coverage of physical damage due to misuse by tenants. Hence, it is useful for properties rented to families or for long-term tenancy.

4.     Multiple Properties Boiler Cover

As the name suggests, this type of boiler cover is available to landlords with multiple properties rented to different tenants. A portfolio boiler plan is available and is more cost-effective than purchasing separate boiler cover for each property.

Important

Landlords need to consider the following aspects when getting a boiler cover.

·         Consider coverage limits. It should cover the expected repair costs based on the age of the boiler.

·         Consider Call-Out Charges. Look for a plan that has low or no call-out fees.

·         Consider waiting times to ensure quick repairs.

·         Ensure inclusion of the central heating system in the boiler cover.

·         Consider the market reputation of the company offering a boiler cover.

·         Carefully read the terms and conditions of boiler cover before signing. Make sure it covers the maximum of your requirements.

Conclusion

A boiler cover is one of the most important things landlords must get for their rented-out properties. Various laws and regulations require landlords to keep their rented properties in habitable condition, with heating and hot water supply among the basic facilities that make a home habitable in winter. Hence, maintenance and upkeep of a boiler play a vital role in this context. A well-maintained, fully functional boiler is essential for consistent heating and uninterrupted hot water at taps and showers. A boiler cover makes it easy for the landlords to fulfill this basic requirement for their rented properties. 

The most important point is that a boiler cover is a separate policy and should not be confused with home or boiler insurance. Landlords must also remember that a boiler cover does not absolve them of other legal responsibilities, such as conducting an annual gas safety check on all gas appliances, including boilers. Landlords must fulfill this responsibility separately, even when a boiler cover is in place.