The Commercial Warranty Group are often asked what is an ‘A’ rated insurance company.

The industry definition of “A”Rated is as follows .. an “A” rated insurance company is considered one that performs at the top of its industry in creditworthiness (the ability to repay creditors and pay any claims presented) as well as how it performs financially when compared to its peers. The stronger the financial strength of an insurance company, the more likely it is that it will not experience financial failure and perhaps even close its doors. The rating is measured by credit rating agencies, the largest and most respected being Standard and Poor’s, Moody’s, Fitch and A.M. Best.

The importance of an ‘A’ Rated insurer as determined by the 4 main agencies and cannot be undervalued irrespective of whatever you insure, it is vital to have a company you can depend on to be around when it is most needed.

Consumer protection is available but it can be limited. A recent example of this was the bankruptcy of Alpha Insurance in 2018. Alpha were an insurance firm authorised and regulated by the Danish Financial Supervisory Authority operating in the UK on a freedom of services basis which meant that some customers, both private and commercial, based in the UK may have had a policy with the firm. 

Alpha Insurance were “unrated”. An unrated insurance company will often have the capability to provide cheaper premiums. Unfortunately a cheaper price does not always mean you obtain great value. It will probably seem great at the time, but you may not be getting what you paid for, the paying out of claims may be difficult and slow and there is a greater risk of that company going bust compared to one which is rated.

These same risks apply with any business; not just with insurance. This is one of the reasons we offer Insurance Backed Guarantees to contractors such as kitchen fitters, roofers etc so that in the event of major faults in workmanship further down the line you will have peace of mind that you are financially protected should that contractor go out of business.

Going back to Structural Warranties and Alpha Insurance it left potentially over 30,000  new homes and conversions uninsured and cover needs to be taken out retrospectively and as soon as possible before the possibility of structural problems occur. Such issues can cost huge sums of money and without insurance the homeowner will be personally exposed. 

If you have a mortgage and an Alpha policy it’s worth checking the contract to see if you are in breach of your mortgage conditions, additionally you may find you are unable to sell your home if it’s under 10 years old and has no valid structural warranty insurance given the new buyer will likely be unable to get a loan on the property.

The cost of retrospective insurance is higher, but the Commercial Warranty Group have negotiated lower premiums until the end of this year to assist Alpha policyholders.

If you are concerned about your position I would check through the paperwork you received when you bought the property to see if you have an Alpha policy, if so contact the Financial Services Compensation Scheme (FSCS) to check if you are eligible to recover any premium or if there are any alternative options, but if you are stuck and want insurance quickly please do not hesitate in making contact with the Commercial Warranty Group but please note that they will not be able to insure all properties but will always be  happy to advise.

Many Developers and Self builders have been left in the dark not knowing whether their structural warranties are still in force or have been unaware until now of their demise

So are you still covered? The simplest and quickest way to find out is to contact us and allow us to investigate for you. Call now on 02476 437638.

Three floors must be rebuilt at a stalled new hospital due to extremely complex structural defects left by Carillion, the construction company.

After Carillion’s collapse work was stopped at the already delayed new Royal Liverpool Hospital.

All in all of the 11 floors 2 will require work. It was due to open in March 2017 originally.

In order to avoid expectations the NHS Trust have refused to confirm a new completion date.

Repeatedly delayed

Originally expected to cost £335m the over 600 bed hospital has had repeated delays due to asbestos being found and major remedial building required.

This includes structural work such as strengthening beams, load reduction and putting in torsion supports.

Over 220 cubic metres of new concrete and 165 tonnes of new fabricated steelwork will be required.

Laing O’Rourke, the new contractor who also built Alder Hey Children’s Hospital and Liverpool One, said they will complete the project to a very high standard.

MP for Liverpool Riverside, Dame Louise Ellman, said: “Carillion’s calamitous collapse left Liverpool in the lurch.”

“It is deeply disappointing that the discovery of significant construction defects will result in further delay,” she added.

“The new Royal should have opened two years ago.

“It is vital for the necessary work to be completed as a matter of urgency, so that the people of Liverpool can have this much-needed new facility.”

Latent defect insurance . .what is it?

Latent defects insurance is a form of cover incepted typically with regards to newly built residential and commercial buildings and provides cover in the event of a defect in the workmanship, design, or materials becoming apparent after completion.

It protects the insured (which can be transferred to new owners) for the agreed sum insured which is typically the full reinstatement value at time of quoting and is typically available for 10 to 12 years from the date of practical completion or final certificate being issued.

Any party who has an interest in the property can be the insured such as the builder / developer and then subsequently the owner. But it can also be the funder or an tenant who has an obligation to repair under a lease agreement.

What does Latent Defects Insurance offer?

Latent Defects Insurance will provide a single avenue though which you can recover the costs of replacing, strengthening, repairing the building following the recording of  latent defects that has or will cause damage / possibly even destruction of the premises.

Places for People, One of the UK’s biggest housing associations, will be delivering hundreds of new modular homes followung a £100,000,000 joint venture.

It is considered the largest modular housing deal yet in Britain.

The chief executive of Places for People; David Cowans said: “This is just the start for offsite manufacturing and as placemakers, we are going to invest even more in modular. We will implement efficient processes and new design techniques which not only raise the bar for the industry – but crucially, give people across the country affordable homes to live in.

“Our partnership is about pioneering a new way of delivering homes and disrupting the market through making socially-responsible decisions and working with best-in-class partners to improve quality, speed up housing delivery and minimise environmental impact.”

In July 2018, a grant was awarded to Places for People to deliver over 2,500 new homes. Partnerships with eight housing associations were forged in all.

Kit Malthouse, the Minister of state for housing, said: “This is excellent news as the UK blazes a trail in the modern methods of construction that are transforming home building.

“Today’s announcement supports our urgent mission to deliver more, better and faster home construction to ensure a new generation can realise the dream of home ownership.”

In 2017 figures suggest that in the UK self-builders are spending less than 25% of the price of a new or existing build yet doubling the size of their homes.

It was revealed in the Self & Custom Build Market Report that self build home owners  can enjoy as much as 247m² as opposed to England’s average of 94m² for the same outlay.

A similar survey by Homebuilding & Renovating, confirmed the same significant savings and development gains self-builders can achieve.

Spokesperson for the Northern Homebuilding & Renovating Show, Jason Orme “Self-builders are making the most of the market as they know the financial and practical results will be more rewarding than if they were to buy a new house. Building your own home allows you to choose its specifications and customise it for your needs. We can confidently say – self-builders appreciate their space.”

This data was collated following an extensive survey of 500 self-builders via an online questionnaire in 2017. The overall analysis was compiled based on statistics from HMRC, DCLG and more.