Invalid policies can have serious repercussions for homeowners who may be in breach of their mortgage terms if they do not hold a structural warranty or suitable solution for property under a decade old
It has been arranging Professional Consultants Certificates (PCC) for these homeowners, the solution does not require all the documentation relating to the property build and it is more cost-effective.
Compariqo hopes to help those looking to replace their structural warranty insurance by researching the market on their behalf for an alternative warranty product, or one in the form of a PCC certificate.
It follows the collapse of unrated Danish insurer Alpha declaring bankruptcy in May last year leaving thousands of homeowners without 10-year structural defects insurance. This forced the FSCS to step in and compensate 14,000 Alpha insurance latent defect premium insurance policyholders.
London-based Compariqo focuses on the construction and property finance market and works with different warranty partners to offer more choice and transparency to the construction sector.
The solution would aid purchasers who may not have had access to the original build documents or any subsequent purchasers who have not had any prior contact with the developer.
Invalid policies can have serious repercussions for homeowners who can find themselves in breach of their mortgage terms if they do not hold a structural warranty or suitable solution for property under 10-years old.
Compariqo´s managing director Mark Griffin said, “the circumstances surrounding the collapse of Alpha last year was very unfortunate”.
“Homeowners may be seeking replacement cover for different reasons, for example this may be for peace of mind regarding additional cover on the property, or to provide evidence of acceptable cover in place to a lender if re-mortgaging, or refinancing, or to pass on to a new purchaser if selling their home. We can help with all of these circumstances and discuss what’s available impartially without bias.”
What is PCC?
PCC was first introduced in 2000 by the Council of Mortgage Lenders (now known as UK Finance) for use by professional consultants in the construction industry, it covers most types of residential properties and is widely accepted by UK lenders.
It confirms that the consultant is qualified in experience to monitor the construction and conversion of residential properties and that relevant checks have been made on the property so that it conforms with previously approved drawing plans.
A Professional Consultant will not be able to issue PCC unless they are accredited to an industry body such as the Royal Institute of Chartered Surveyors (RICS).
Any claims brought forward under the PCC will be covered under professional indemnity insurance of the Consultant for a period of six years from the date of the certificate.
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