The Financial Services Compensation Scheme has announced the news that it will compensate Alpha Insurance policyholders with latent defect insurance policies.
This news 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.
In a statement the FSCS confirmed that it “recognises 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.”