Alpha insurance liquidation and structural warranties: Is your home still covered?

Following the news that Alpha Insurance A/S had declared bankruptcy, thousands of policy holders in the UK rushed to find answers. But many – including some self builders – are unaware that they might be affected.

The company offered insurance policies across the board through various UK brokers. Many taxi drivers, for instance, were left without cover last week and urged to arrange new policies to continue working.

Self builders have also started to ask whether their structural warranties are still in place. We’ve put together what you need to know to make sure your home investment continues to be safe.

What does my structural warranty cover?

A structural warranty will generally last 10 years after completion of your build and is there to help you solve any structural issues with your new home.

Policies cover the cost of complete or partial rebuilding of your new home should it suffer damage caused by defects in the design, workmanship, materials or components of the building’s waterproof envelope and drainage system – as well as elements such as faults in new chimneys and flues that could pose a threat to the health and safety of the occupants.

Structural warranties generally require technical inspections at key stages of your build to check that every part of the project is up to standard, therefore minimising the risk of structural damage further down the line.

Read more: Quick Guide to Structural Warranties

Why is Alpha’s insolvency relevant to me?

Alpha Insurance A/S has provided a range of insurance policies across the UK, such as professional indemnity, motor and gap insurance, and home insurance.

Many homeowners who have taken structural warranties through brokers may be unaware that they are Alpha policy holders.

David Sumner, from Advantage Home Construction Insurance, said: “Much has been reported on the knock-off effect of Alpha going bust.

“However, what hasn’t been highlighted is the impact this will have on thousands of new homes owners. Information is starting to filter through, but unfortunately many policy holders will have to take out fresh insurance, which is an unwelcomed and unexpected blow

“We need urgent action to ensure that those who are affected are informed.”

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