Boiler Cover Won't Repair Boiler. Can I Cancel?

simon7461

Hi. I have a Boiler & Home Cover policy with Utilities Warehouse, sub-contracted to an insurer called Preferred Management.  I have had the policy over 2 years, renewing each year. I pay monthly for the policy on my combined UW bill.  My current policy runs until 6th August.

Last week I made a claim for a broken boiler and paid £60 excess. The engineer sent a repair quote to the insurer who rejected it as Not Economically Viable since the cost of the repair was (allegedly) higher than the value of the boiler. I asked them to refund the excess since they were unwilling to repair the boiler - they refused on the grounds that they had attended my home. They have offered a £250 payment towards a new boiler.  

I have contacted Utilities Warehouse and asked them to cancel my boiler cover, since I am not willing to pay for boiler cover when they now refuse to cover my boiler. Utilities Warehouse want me to pay all remaining premiums up to the August expiry of the policy. I am questioning why I would continue paying for a product which they have stated they are no longer willing to provide. 

I understand that these policies are sold as a 'credit agreement' when paying on monthly terms. But then I've paid for 12 months of cover and only received 8. So surely UW are in breach of contract or have mis-sold the contract? I also understand they've offered £250 so I won't be out of pocket - but this is meant to help buy a new boiler (Ha!), not pay off the rest of a useless policy.

It goes without saying I will be cancelling all other services with them and taking my custom elsewhere. Have I got any chance of not paying the rest of this useless policy?

Aylesbury_Duck

simon7461 said:

Hi. I have a Boiler & Home Cover policy with Utilities Warehouse, sub-contracted to an insurer called Preferred Management.  I have had the policy over 2 years, renewing each year. I pay monthly for the policy on my combined UW bill.  My current policy runs until 6th August.

Last week I made a claim for a broken boiler and paid £60 excess. The engineer sent a repair quote to the insurer who rejected it as Not Economically Viable since the cost of the repair was (allegedly) higher than the value of the boiler. I asked them to refund the excess since they were unwilling to repair the boiler - they refused on the grounds that they had attended my home. They have offered a £250 payment towards a new boiler.  

I have contacted Utilities Warehouse and asked them to cancel my boiler cover, since I am not willing to pay for boiler cover when they now refuse to cover my boiler. Utilities Warehouse want me to pay all remaining premiums up to the August expiry of the policy. I am questioning why I would continue paying for a product which they have stated they are no longer willing to provide. 

I understand that these policies are sold as a 'credit agreement' when paying on monthly terms. But then I've paid for 12 months of cover and only received 8. So surely UW are in breach of contract or have mis-sold the contract? I also understand they've offered £250 so I won't be out of pocket - but this is meant to help buy a new boiler (Ha!), not pay off the rest of a useless policy.

It goes without saying I will be cancelling all other services with them and taking my custom elsewhere. Have I got any chance of not paying the rest of this useless policy?

It sounds like you're paying for an annual insurance policy in 12 monthly instalments, rather than paying for a monthly insurance policy.  In which case, you are obliged to pay all 12 instalments.  It's the norm with other insurances like car insurance.  You need to check your contract to make sure they're applying it correctly, but it sounds like they are.

In an extreme example, where this had happened on day one of the policy, would you expect to not have to pay for the remaining 364 days of the year?  That would make no sense for the insurer.

GDB2222

The real question is whether the policy was mis-sold, and whether you can reclaim all the premiums that you have paid so far? That would depend on what details you were given and what promises were made. Also, of course, whether any repairs have previously been completed. 

Is this, in fact, a policy of insurance? 

simon7461

Yes, absolutely if I bought an insurance policy up-front on day 1, and on day 2 the insurer refused to cover me, I'd expect a refund. If I bought any item on day 1 that didn't work on day 2 I would expect a full refund. But generally I am very sceptical about the whole concept of insurance - it's a legalised grift. And I've had several bad experiences with this particular insurer over the last few months which has soured my outlook.

Happily, after some protracted whinging to customer services they've just agreed with my position that I shouldn't pay for a service they have stated they refuse to provide, and offered to cancel the policy with me only making payments up to the date of refusal to cover.

simon7461

GDB2222 said:

The real question is whether the policy was mis-sold, and whether you can reclaim all the premiums that you have paid so far? That would depend on what details you were given and what promises were made. Also, of course, whether any repairs have previously been completed. 

Is this, in fact, a policy of insurance? 

Sorry I hadn't seen your follow-up post. I... assume it's an insurance policy? It is sold as 'Insurance' on Utilities Warehouse website, it comes with documentation such as Policy Wording, Policy Schedule, IPID etc. I'm not interested in reclaiming my previous premiums, I received several months of cover in good faith, and did use one repair where the damage was caused by this company's engineer carrying out an annual boiler service the previous day (and which I also had to pay £60 excess). So I'm willing to pay for the cover I received, I was just not willing to pay the ongoing cost until August for a policy I couldn't use.  

Aylesbury_Duck

simon7461 said:

Yes, absolutely if I bought an insurance policy up-front on day 1, and on day 2 the insurer refused to cover me, I'd expect a refund. If I bought any item on day 1 that didn't work on day 2 I would expect a full refund. 

That's not what's happened here, though.  You've had a payout, i.e. the benefit of the policy.  I agree that if a provider simply refused to cover you you'd be due a refund, but not if you'd already had the benefit of that policy.

simon7461 said:

Happily, after some protracted whinging to customer services they've just agreed with my position that I shouldn't pay for a service they have stated they refuse to provide, and offered to cancel the policy with me only making payments up to the date of refusal to cover.

Excellent.  Sounds like a good result and that they've probably gone beyond their obligations.

simon7461 said:

 But generally I am very sceptical about the whole concept of insurance - it's a legalised grift. And I've had several bad experiences with this particular insurer over the last few months which has soured my outlook.

Then don't take it out.  Other than things like buildings and car insurance which are mandated, almost all other insurances are optional.  I self-insure for my boiler cover, putting money aside each month so that if I need to call my trusted heating guy out, I have the funds ready.  I'm significantly "up" on the deal after several years, but it could have gone either way.   

Insurance is generally something you pay for that you hope will be a waste of money.   I don't see how that makes it a "legalised grift".

daveyjp

Check the small print for the 'uneconomical to repair' clause as that is what they are relying on to refuse the claim.

TELLIT01

It might also be worth getting a local heating engineer to check it out.  There will be a cost, even if they do say it's beyond repair, but they may save you the cost of a new boiler.