New Build Structural Insurance Query

Cyrus

we purchased a new house in 18 months ago, we just got a letter from the brokers that managed the homebond (which wasnt a homebond but an equivalent).

Policy was underwritten by alpha insurance AS a danish entity and today the 20 homeowners got a letter from the liquidator saying that this entity is now in liquidation and policies are voided.

the policies were to run until 2026.

Anyone any idea what happens now, developer obliged to put cover in place, homeowners problem instead?

Mod Edit
Thread title altered to reflect Structural Insurance Query rather than naming a company with no involvement.

Gumbo

This could be quite worrying as i'm sure your estate is not the only one affected.
I've never heard of this crowd to be honest, so will have to read up on them.

Liability now may stand with the home owners, but it could depend on the Defects Liability required by the original developer, may be a leag question there.....

Its worth noting that this insurance policy is not a legal requirement or statutory requirement as far as i'm aware, its an add on that the builders put on as a selling point and it ma be a condition of the mortgage providers at the time of purchase.

Cyrus

kceire wrote: »

This could be quite worrying as i'm sure your estate is not the only one affected.
I've never heard of this crowd to be honest, so will have to read up on them.

Liability now may stand with the home owners, but it could depend on the Defects Liability required by the original developer, may be a leag question there.....

Its worth noting that this insurance policy is not a legal requirement or statutory requirement as far as i'm aware, its an add on that the builders put on as a selling point and it ma be a condition of the mortgage providers at the time of purchase.

thanks for the thread edit, homebond is a bit like hoover as a term :P

yes the letter we got states you may want to put this cover in place as if you seek to sell the house a buyer will require it, and it may well be a condition of mortage.

its a private estate with a mgt co (there are only 21 properties) so we may have to deal with it as a group, and speak to the developer.

Gumbo

Cyrus wrote: »

thanks for the thread edit, homebond is a bit like hoover as a term :P

yes the letter we got states you may want to put this cover in place as if you seek to sell the house a buyer will require it, and it may well be a condition of mortage.

its a private estate with a mgt co (there are only 21 properties) so we may have to deal with it as a group, and speak to the developer.

, yes like saying I'm buying a Hoover from Dyson


You don't have to have it in place, and anybody buying a second hand home (should you wish to sell) will not be looking for it. It may well be only a requirement for new builds and first time purchasers of those builds.

For example, I sold my new build inside the 10 year term (Premier Guarantee) and we didn't hand over anything or any documentation to do with it.

Marcusm

Cyrus wrote: »

thanks for the thread edit, homebond is a bit like hoover as a term :P

yes the letter we got states you may want to put this cover in place as if you seek to sell the house a buyer will require it, and it may well be a condition of mortage.

its a private estate with a mgt co (there are only 21 properties) so we may have to deal with it as a group, and speak to the developer.

Looks like the Danish state guarantee fund only covers claims made in the 4 weeks after insolvency and that policyholders are encouraged to seek new cover. For annual policies that might be appropriate but for 10 year cover it leaves the holder at a significant loss. Good luck with the developer discussions but I suspect that it has limited responsibilities after completion - that’s the point of the insurance. Might be worth establishing if that insurer was offering uneconomic cover which might be indicative of problems which should have been apparent.

Cyrus

Marcusm wrote: »

Looks like the Danish state guarantee fund only covers claims made in the 4 weeks after insolvency and that policyholders are encouraged to seek new cover. For annual policies that might be appropriate but for 10 year cover it leaves the holder at a significant loss. Good luck with the developer discussions but I suspect that it has limited responsibilities after completion - that’s the point of the insurance. Might be worth establishing if that insurer was offering uneconomic cover which might be indicative of problems which should have been apparent.

thanks, have spoken with him this morning (as it was a small estate we probably got to know him better than would normally be the case) he says he is working on alternative cover, but we shall see.