Emergency firm Homecall+ goes bust: your rights

Homecall+, which provides heating and plumbing cover, went into liquidation on 10 May.

Policyholders, who typically paid between £100 and £200 for annual cover, that bought insurance on or before 3 December 2010 should still be fully protected.

Anyone else may be protected by the Financial Services Compensation Scheme (FSCS), though this is not yet confirmed. If they are, they will only be covered for up to 90% of the value of any claim.

Homecall+ is regulated by the Financial Services Authority (FSA), but it now states on the FSA register that Homecall+, based in Blackburn, "must not carry on regulated activities" as it is "in liquidation".

When MoneySavingExpert.com tested the Homecall+ website today it still appeared active and even allowed us to go through a policy purchase until the payment page, though we did not try to go further.

Cover bought on 3 December or earlier: your rights

Homecall+ did not provide insurance itself as it is a registered middle man with the British Insurance Brokers' Association trade body.

Policies were backed by insurer Brit Insurance until 3 December 2010.

Brit says it will honour all claims for policies it underwrote until that date.

Cover bought after 3 December: your rights

It is not clear which insurer, if any, backed policies sold since then, which could make them worthless. This is where the FSCS may be able to step in.

The firm is not yet 'in default' by the FSCS definition, which signifies when a company has failed, as the compensation body is still conducting investigations.

However, if it moves into default the FSCS will either seek a buyer for Homecall's book which would mean customers are fully insured by another firm, or the FSCS protection up to 90% of a claim's value could kick in.

The FSCS says even where a regulated firm takes payment for insurance but there is no cover in place, it will honour its guarantee to protect 90% of a claim's value.

That said, until it confirms it will pay claims, there is a potential risk to consumers.

MoneySavingExpert.com tried to contact Homecall+ today but its main number was constantly engaged. Meanwhile, its claims hotline routed the call to a third party.