New build homeowners in the UK could be unaware that they are missing critical structural defects insurance after Alpha’s collapse
Thousands of new build homeowners could be without 10-year structural defects insurance following unrated Alpha’s collapse.
Many may not be aware of this, according to Advantage Home Construction Insurance (AHCI).
AHCI did not place business with Alpha, but claims that other brokers in the market did.
Unrated Danish insurer Alpha was declared bankrupt last Tuesday, leaving 10,700 cab and taxi drivers without insurance and leading to scenes of chaos outside broker offices as drivers scrambled to buy a new policy.
Drivers insured through broker Protector were informed by text and email, but many homeowners may still be unaware that they are no longer insured.
Carrot customers, of which there were 9,000 insured by Alpha, were seamlessly rescued by Aviva.
Other policyholders were also affected, with the scale of the impact of the insurer’s collapse still emerging.
The Danish regulator and the UK’s FCA have urged policyholders to rearrange cover.
David Sumner, sales director of AHCI, has called for urgent action: “Much has been reported of the knock-on effect of Alpha going bust, car insurance policies and the impact on London black cab drivers.
“However, what hasn’t been highlighted is the impact this will have on thousands of new homes owners.
“This is a catastrophic blow for all of those whose beloved homes were protected from any potential structural issues by the now defunct Alpha.
“What is becoming worryingly apparent is the fact that as most policies are purchased via brokers many developers, and as a result many home owners, are now unaware that their policies are void.
“Information is beginning to slowly filter through, but unfortunately many policyholders will have to take out fresh insurance, which is an unwelcome and unexpected blow.
“We need urgent action to ensure that those who are affected are informed and what steps are now going to be taken to protect these now uninsured homes.”
More to follow.