THOUSANDS of people may not be insured for damage after a company went into liquidation.

Homeowners who took insurance with Tribune Risk and Insurance Service Limited have been warned they could have no cover.

The Scottish company went into liquidation last month and has no reserves or provisions in place to meet claims.

Up to 40,000 people could be affected. They are being urged to contact their local broker immediately to arrange alternative cover.

Journalists Chris Webber, 34, and Emily Flanagan, 27, only found out the company had folded, leaving them without insurance, when they lost their chimney at the weekend.

They called the fire brigade and police on Saturday morning to close their street in Aycliffe Village, County Durham, when the chimney stack started to rock in the wind.

Mr Webber said: "A neighbour told us to move the car or it could be hit by the chimney. When we looked up, the masonry work was falling off and the chimney pot was held up by the aerial cable.

"The fire service removed it for us but now we are left facing the repair bill. One local builder said it could be £1,200.

"We have been warned that we will probably get nothing because the company was not underwritten, so should not have been selling insurance."

The company was not regulated by the Financial Services Authority or General Insurance Standards Council and was not in the British Insurance Brokers Association (BIBA).

Peter Staddon, of BIBA, said: "Our advice to policyholders of Tribune Risk and Insurance Services is to go and speak to your local broker, who is regulated and who will determine whether or not you are still covered.

"It is important that when arranging insurance, customers look for evidence that they are dealing with a regulated insurance seller."

A helpline - 0870 164 8120 - has been set up for Tribune customers who need advice.