Replacement New Homes Guarantee

taddo12

I’ve recently accepted an offer on my flat and am currently trying to exchange contracts. However I was only just informed that the insurance company who issued my initial new homes guarantee (Alpha insurance) went bust in May 2018 and as such the guarantee is now void. From what my solicitors have told me any replacement policy cannot be taken out on the individual flat and must be for the entire building (consisting of 5 individual units). Is my only available option now to contact all the other landlords in the property and arrange to have replacement cover collectively paid for?

Any response/advice much appreciated.

eddddy

Who is your freeholder?

Depending on what your lease says, you could try arguing that it's the freeholder's responsibility to arrange this.

Typically, the freeholder is responsible for insuring the building, and you could try arguing that 'Latent Defect Insurance' (i.e. a newbuild warranty) is an element of building insurance.

Then the freeholder would have to collect the shares of premium from each leaseholder.


So, presumably the buyer (or their lender) is insisting on a warranty.

G_M

Lots of similar threads on the forum. Use the search button for "Alpha insurance".

davidmcn

eddddy wrote: »

Depending on what your lease says, you could try arguing that it's the freeholder's responsibility to arrange this.

Typically, the freeholder is responsible for insuring the building, and you could try arguing that 'Latent Defect Insurance' (i.e. a newbuild warranty) is an element of building insurance.

No, I would expect the lease to be specific about "insurance" meaning normal risks for a buildings insurance policy, not something covering latent defects.

taddo12

This is the line my solicitors have taken, buildings insurance (which I pay freeholders towards) apparently is different. Thank you anyway

taddo12

Thank you, will do. I assume there are others whoeve have had to secure replacement guarantee for their individual properties in a block?

[Deleted User]

You could google alpha insurance replacement flats.., an MSE post comes up.