CRL underwriter declared bankrupt

[Mr Punter]

10 minutes ago, Bitpipe said:

Would the MBC structural guarantee give the same reassurance to a lender (is it insurance backed??)

 

Or a professional consultant certificate, but I would save your money as the cost will probably be £2,000, you can't realistically make a claim against it and you may never need to produce it.

[newhome]

1 hour ago, Bitpipe said:

Have gone back to broker to understand where this assumption came from and will rope in our inspector but also wondering if I should just take the money back and forget about a warranty.

 

Heck I would take the money and run. I have a warranty (Buildstore) but I don't really value it TBH. In hindsight I may not have bothered with it. My neighbours bought their house (similar to this but built by a local builder). They have a mortgage, no warranty and the house didn't even have a completion certificate or even temp habitation up until 6 months ago. That only came to light once my house was signed off as it was a joint building warrant and the council started chasing them for the renewal fee since I had been paying for the renewals before that. I would set the cash value aside to put towards any additional costs incurred later as a result and worry about it then. 

[Bitpipe]

56 minutes ago, newhome said:

 

Heck I would take the money and run. I have a warranty (Buildstore) but I don't really value it TBH. In hindsight I may not have bothered with it. My neighbours bought their house (similar to this but built by a local builder). They have a mortgage, no warranty and the house didn't even have a completion certificate or even temp habitation up until 6 months ago. That only came to light once my house was signed off as it was a joint building warrant and the council started chasing them for the renewal fee since I had been paying for the renewals before that. I would set the cash value aside to put towards any additional costs incurred later as a result and worry about it then. 

 

This is my gut reaction also. Will see what the broker says on Thurs.

[Bitpipe]

On 27/11/2018 at 19:48, Bitpipe said:

 

This is my gut reaction also. Will see what the broker says on Thurs.

 

Broker has offered to go back to insurer and explain gap in BC sign-off.

 

However still tempted to just get the premium back...

[newhome]

4 minutes ago, Bitpipe said:

 

Broker has offered to go back to insurer and explain gap in BC sign-off.

 

However still tempted to just get the premium back...

 

What really matters is that the warranty is accepted by the buyer’s mortgage company if you come to sell. That’s a moving target TBH as these things change and this list may not be the same 10 years from now. You need to decide if that is an additional risk you are prepared to take. 

 

https://www.cml.org.uk/lenders-handbook/englandandwales/question-list/1913/

 

 

[Bitpipe]

Ah well, they issued the warranty - luckily I had not mentally spent the premium yet!

 

[newhome]

4 minutes ago, Bitpipe said:

Ah well, they issued the warranty - luckily I had not mentally spent the premium yet!

 

 

Well at least you got what you paid for I guess. Wonder how others have fared. 

[Bitpipe]

Just now, newhome said:

 

Well at least you got what you paid for I guess. Wonder how others have fared. 

 

On closer inspection, maybe not. The policy start date has been set to Aug 1st 2016, when they believe we occupied (was actually a month later but that's immaterial).

 

The legal completion date is 6th Sep 2018 according to BCO.

 

This is relevant as there are two parts to the policy, a 2 year defects indemnity (where they cover cost if trade has ceased to trade) and the 8 year structural insurance. 

 

They only issue policy when building is signed off as complete so how on earth can they backdate to exclude the first part of their policy (which would never have been able to claim).

 

Will see what broker says...

[newhome]

This happened to me with Buildstore. They backdated the warranty to the date that I completed the form for the completion inspection by BC rather than the actual date of completion that was a year later. They said that it was because that is when the house was deemed to be complete by me as well as them as I had completed the form. I pointed out that I had done this as that’s what the council told me to do after my hubby had died as I wasn’t sure what still needed to be done, and this would trigger an inspection by them that would detail what was still needed. Anyway as a result of my explanation they changed the date to the day of completion. I think @PeterStarck had a similar experience where the date doesn’t quite match the completion date.  

[Gone West]

2 minutes ago, newhome said:

This happened to me with Buildstore. They backdated the warranty to the date that I completed the form for the completion inspection by BC rather than the actual date of completion that was a year later. They said that it was because that is when the house was deemed to be complete by me as well as them as I had completed the form. I pointed out that I had done this as that’s what the council told me to do after my hubby had died as I wasn’t sure what still needed to be done, and this would trigger an inspection by them that would detail what was still needed. Anyway as a result of my explanation they changed the date to the day of completion. I think @PeterStarck had a similar experience where the date doesn’t quite match the completion date.  

That's correct, the reason they gave was the warranty runs from when the house was weather tight. This was because the build was taking a long time to complete. I couldn't be bothered to argue, at that stage I had more important things to worry about.

[newhome]

1 minute ago, PeterStarck said:

That's correct, the reason they gave was the warranty runs from when the house was weather tight. This was because the build was taking a long time to complete. I couldn't be bothered to argue, at that stage I had more important things to worry about.

 

Seems like they make it up as they go along TBH . Surely the warranty would need to start at the completion date as I assume any mortgage company would expect a warranty to be in place for 10 years after sign off, not some mythical date that they decide the house is weathertight? Seems odd if that's not the case. If you're not thinking of moving it's no issue I guess but I doubt I will be here 10 more years ... 

 

[Bitpipe]

So broker has apologetically come back and says they won;t budge. Another client, for whom the insurer have refused to even issue cover (issued a refund) and they are taking them to the ombusman as any equivalent cover is now going to be significantly more expensive.

 

I've asked him to go back and ask for a refund for the two years that the policy has been shortened by - even by their logic, how do I make a claim in those first two years if the policy was not 'at risk' ?

 

Had they issued the cert two years ago then I could see their argument.

 

Again wondering if it's worth the money - nagging thought is that the house is potentially un-mortgageable for some lenders.

 

On the flip side, I have the insurance cert now so could flash it to the surveyor  Last one just asked 'if' I had a warranty.

 

 

[Bitpipe]

This is from the policy document - my emphasis. Have already called Ombudsman and they would get involved once a formal complaint to the insurer is responded to.

 

So no BC sign off, no policy. So how do they justify backdating it then?

 

Technical Assessment

The Residential Property insured by this Policy must be subject to a system of checks and inspections:

Qualified Building Surveyors must have completed inspections before the Insurance Certificate was issued. Any Site inspection or other risk control procedures adopted are solely for their benefit and do not confirm or imply that the Residential Property is or will be free of defects or damage.

It is the Insured’s responsibility to ensure that a thorough inspection of the Residential Property is carried out prior to completion of the refurbishment/renovation/construction by the Builder. If the inspection identifies any defects they must be reported to the Builder and remedied prior to completion of the contract by the Builder, any satisfaction note being signed or contract being considered complete.

THE INSURER WILL NOT BE LIABLE FOR ANY DEFECTS DISCOVERED OR KNOWN TO THE INSURED PRIOR TO THE COMPLETION OF THE REFURBISHMENT/ RENOVATION /CONSTRUCTION WORKS OF THE RESIDENTIAL PROPERTY BY THE BUILDER, WHETHER ATTENDED TO OR NOT

General Notes

1) For this Policy to be valid there must be a signed Insurance Certificate held by the Insured. This should be kept with the Policy and must be provided at the time of any claim.

2) Any amendments or alterations to this policy whether applied at the time of issue of the Policy and subsequently later will only be valid if confirmed by separate Endorsements, which should be kept together with the Policy. The Insured should refer to these Endorsements and the Policy together as one document ascertaining the precise cover in force at any time.

[Fallingditch]

Another update on the The Financial Services Compensation Scheme page, last updated 30/2/2019.

"30 January, 2019

Following our update on 21 November, CRL Management have recently identified a potential replacement insurer. FSCS is continuing to work with CRL Management, the Alpha Liquidator and the Danish Guarantee Fund to secure replacement cover for Alpha latent defect/structural damage insurance policies that terminated on 11 August 2018".

 

comment: matters are proceeding very slowly, but there does appear to be progress so I'm not going to take any action at this time.

[Fallingditch]

There have been twelve updates since 30/1/2019.

 

Generally positive news.

 

The latest was 1st August:

 

"The deal to secure replacement cover for Alpha Insurance’s latent defect policyholders remains agreed in principle and subject to contract. We’ve been working closely with BCR (the main Broker) and the Alpha Liquidator to try to resolve some very complex issues so we can secure replacement cover for Alpha’s 10-year latent defect/structural damage insurance policies.

BCR Legal Group Ltd had previously indicated that its replacement insurer was in a position to proceed. However, they have now advised us that the replacement insurer has raised several last-minute issues that are preventing the agreement from being finalised. 

We’re not sure at this stage if the replacement agreement will be able to proceed, but we are continuing to do everything in our power to make it happen as we know how important this is to everyone affected and we believe that this is the best outcome for customers.

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."

[Fallingditch]

Unfortunately, the outcome has turned out to be almost entirely negative.

 

19 Aug, 2019

"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 about this on the Q&A 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 fab@biba.org.uk.

 

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/.

 

https://www.fscs.org.uk/failed-firms/alpha/

[newhome]

54 minutes ago, Fallingditch said:

Unfortunately, the outcome has turned out to be almost entirely negative.

 

So is that just a refund of the premium element for the 10 year cover, or a full refund including the inspection payments? From memory my premium was circa 700 from a payment of 2400. 

 

[newhome]

This is an old thread to be reopening but I’ve seen some info that is relevant that I have been given permission to share. Here is the info in its entirety. 
 

“We complete hopefully today. 
In the run up to this we’d also be requesting a structural warranty cert. 

We purchased our warranty from CRL who inturn engaged the building inspector to undertake inspections for them. our inspectors were great (Salus)

CRL informed us that their insurers Alpha had lost a legal case and were in administration as a result, CRL them came back to us asking for further money for a new policy, we refused and left it there, as we were still having BC inspections and recording everything. 

So this leaves us without a warranty, our mortgage co Ecology, has dropped the requirement so we are okay mortgage wise.

Latest news on this if you have the same is that the FSA are refunding 90% of warranty fees for the remaining period, claim directly through them. 

We can now purchase a PPC cert which can be backdated in effect which allows us to remortgage should we need to. 

This can’t only have effected us so hopeful this is helpful to someone in the same position.”