Landlords beware of this company

20 September 2009

Landlords beware of this company

CoverHeat, a gas boiler insurance company, has ceased trading and departed its south coast base leaving a trail of unpaid claims and thousands of unhappy customers.

The company, which was already being investigated by trading standards. It emerged this week that the operators of the business park in which it was based have confirmed it left the premises in "January or February".

Worryingly, it was still accepting new payments via intermediary firm, Netbanx. And its website was up and running this week, although there is no one answering the phone or accepting­ mail.

Its apparent collapse leaves thousands of customers holding worthless policies, and facing having to claim their cost back from their credit card provider. Many who paid by debit card will have lost their money.

CoverHeat was set up in 2006 to offer an alternative to British Gas's homecare boiler insurance. Its policies cost £150 a year and aimed to cover emergency repairs and call-outs by a qualified plumber if the boiler, or any other part of the central heating system­ broke down. The price included an annual­ ­­­service, and was the cheapest in the market. Thousands of consumers are thought to have bought policies online.

However, the company appears to have run into difficulties last year. Customers initially complained of its shambolic administration. It later became­ more and more difficult to get a plumber to visit as promised.

DO NOT USE THIS COMPANY