Update to all latent defect policyholders in the UK
FSCS will compensate Alpha Insurance latent defect premium insurance policyholders.
This follows the collapse of the deal arranged by BCR Legal Group Ltd to provide replacement cover for Alpha’s 10-year latent defect/structural damage insurance policies due to a number of last-minute issues.
As a result, policyholders cannot be expected to wait any longer and FSCS is to pay premium refund compensation to around 14,000 policyholders directly and cheques will be posted in the coming weeks. FSCS is also writing to the remaining 6,500 policyholders with instructions on what steps the policyholders must take to submit their claim. There is no need for any Alpha customers to contact FSCS, as all relevant policyholders can be assured that FSCS will seek to contact them within the next two weeks. You can find more information on this process in an FAQ on the ‘Information’ tab.
We recognise that a refund of premium may not be the outcome Alpha customers would have chosen and we deeply regret that it wasn’t possible to find replacement cover. Please be assured that FSCS and other parties exhausted every possible avenue to try to replace the cover, which is why this process has taken so long.
Once the premium insurance refund has been paid, FSCS recommends that policyholders seek professional advice on obtaining replacement cover as soon as possible by contacting a suitable insurance broker who specialises in latent defect/structural damage policies.
Policyholders may be in breach of their mortgage terms and conditions if they do not have a valid latent defect policy for their property. Should policyholders not know of a suitable insurance broker to help with replacement cover, they can get help via the British Insurance Brokers’ Association’s ‘Find-A-Broker’ service by telephoning 0370 950 1790, email email@example.com.
If you have a post-completion certificate of insurance and have not received a cheque from FSCS by 15 September you will need to submit your claim for return of premium via the Alpha portal: https://alphagroup.dk/submit-a-claim/.
Read FSCS press release here: https://www.fscs.org.uk
Click here for more information from FSCS: https://www.fscs.org.uk/failed-firms/alpha/
If your property has sustained damage caused by a latent defect you should raise a claim by notifying BCR and the developer, as set out in your policy documentation.”
Claims handler: BCR
Telephone: + +44(0)8007723200
COVER FROM GUARANTEE FUNDS
The Danish Guarantee Fund cover claims, if:
- The structural damage insurance on the building was originally taken out and paid for by a private person, or,
- The property (building) has been sold and transferred to a private person before the date of the liquidation of Alpha Insurance A/S (8th May 2018) and the structural damage insurance on the property (building) concerned has also been transferred, either explicitly or in the form of a clear written commitment, which states that the private person can invoke the insurance directly.
You might be aware of, that the Danish Guarantee Fund only provides compensation for claims detected within four weeks of the issuance of the information notice from the bankruptcy estate, but at latest the 11th August 2018.
CLAIMS OUTSIDE THE AREA OF COVERAGE OF THE DANISH GUARANTEE FUND OR OTHER GUARANTEE FUNDS
The Danish Guarantee Fund does not provide compensation for claims for damages on building, if the structural damage insurance was taken out and paid by a commercial/developer and the commercial/developer was still the policyholder/owner of the policy on the 8 May 2018.
Furthermore, the Danish Guarantee Fund does not provide compensation for claims of damages on buildings, if the policyholder is an association of private persons in a company, even though the beneficiary of the insurance is a private person.
Also, the Danish Guarantee Fund does not provide compensation for claims of damages on buildings, if the policyholder is a houseowners’ association or a cooperative housing association, even though the beneficiary of the insurance is a private person, the association is not commercial or a divided private/commercial association.
Claims might possibly also be covered by the U.K. guarantee fund, the Financial Services Compensation Scheme (FSCS). For further information please refer to: www.fscs.org.uk. The bankruptcy estate is in dialogue with the FSCS about the process for payments on claims covered by the FSCS. New claims must still be notified to your claims handler, in accordance with the procedure stated in your insurance policy.
The bankruptcy estate is also in contact with the claims handlers, BCR, regarding the further claims handling process. Furthermore, the Danish Guarantee Fund has sat up a payment flow with BCR for payment of claims and the bankruptcy estate has agreed to approve payment for claims investigation costs. If you want to report a new claim, or have questions on a claim that has been reported already, please contact BCR.
NOTIFICATION OF CLAIM FOR RETURN PREMIUM
The Danish Guarantee Fund only pays return premium less an excess of DKK 1,000 per policy, if the structural damage insurance on the building originally was taken out and paid by a private person in favour of the person concerned and the private person is still the policyholder/owner of the policy.
If the structural damage insurance on the building originally was taken out and paid by a commercial/developer and subsequent has been sold and made over to a private person, the Danish Guarantee Fund does not pay return premium.
Furthermore, if the structural damage insurance on the building originally was taken out and paid by a commercial/developer and the commercial/developer is still the policyholder/owner of the property (building), the Danish Guarantee Fund does not pay return premium.
If the claims for premium refund is not covered by the Danish Guarantee Fund, the policyholder/owner of the policy then the claim for premium refund will be against the bankruptcy estate. Please submit a claim at the webformular at www.alphagroup.dk.