Home Insurance Legal Cover: What You Need To Know

If you've ever experienced neighbour disputes regarding noise complaints, boundary disagreements, or parking space issues, you'll know how stressful they can be.

It's precisely for these reasons that you shouldn't overlook home insurance legal cover when it comes to shopping around for the best home insurance policies.

This legal assistance insurance will cover potentially hefty legal costs in the event of a dispute. But it rarely comes as standard and can increase your premium. If you’re weighing the pros and cons of legal fees insurance before committing, read on to discover all you need to know.

Legal disputes are stressful at the best of times, but they can take a particular toll on your finances. Solicitors and court fees aren't cheap, and prolonged cases can see costs spiral.

This is where legal cover, sometimes referred to as family legal protection, comes in. Typically offered as an add-on to your buildings and contents insurance, legal cover helps pay for costs incurred by legal wrangles, such as professional solicitor advice, legal representation, or court fees.

The cover is designed to relieve policyholders from the financial worries of legal matters, enabling them to focus on pursuing or defending the claims in question.

Although it's commonly added to your home insurance policy, legal cover doesn't just provide financial support for issues relating to the home. You can also access support if you’re embroiled in employment disputes, personal injury claims, or consumer appeals.

You don't strictly need to have legal expenses cover as part of your home insurance policy. Unlike buildings insurance, it’s not typically a requirement demanded by banks before they release mortgage funds for a house purchase.

But having legal costs covered by your home insurance can be a smart move. Much like events that cause problems with your home, such as theft and flooding, legal issues can arise at any time. You'll be financially covered for many disputes relating to your home and other aspects of your life.

Having legal cover can, therefore, provide additional peace of mind. And, given that it sometimes comes included as standard by some insurers, you might already be covered. If you're wondering what your home insurance covers, dig out your policy documents and take a closer look.

There are several key advantages to adding legal expenses cover to your home insurance policy:

Just speaking to a solicitor can be costly. Appointments are often charged by the hour, and even phone calls can be billed. The good news is that most legal expenses policies include access to professional legal advice, which means you can seek guidance on a contract or boundary dispute at the earliest moment without worrying about the cost. It could prevent a bubbling disagreement from escalating.

Legal cover will support associated costs if things escalate to the point that the dispute can only be settled in court. Policyholders won't be left with the full financial burden of hiring lawyers or court fees.

Although legal expenses cover is often bought alongside home insurance, it's not restricted to property-related legal matters. Policyholders frequently overlook that their legal insurance will also support cases relating to employment disputes and personal injury claims.

Like buildings and contents insurance, legal expenses cover provides peace of mind that support is at hand should unexpected issues arise. What's more, if you were to become embroiled in a legal matter, being unburdened by costs can instill the confidence to act decisively.

Policyholders might be pleasantly surprised to learn that adding legal cover as part of your home insurance doesn't only offer support for property-related disputes. You'll usually be covered in the following situations:

If you end up in an argument with a neighbour over a boundary issue or noise complaint, legal cover will support financial costs should you seek legal advice. This also includes tradespeople who may have caused damage but refuse to cover the repairs through their liability insurance.

You don't need to be a homeowner to buy legal cover. If you're a tenant, legal expenses cover can help in the event of a dispute with your landlord. This can include issues over rental payment, return of deposit, evictions, or breach of contract.

If you've suffered an injury due to an accident that wasn't your fault, you may have the right to claim compensation. Legal cover should support related legal costs in the case of personal injury claims. It can also cover medical negligence claims.

In some cases, legal cover can provide support if you're having trouble at work. In the case of wrongful dismissal or harassment claims, your policy should cover the costs of legal advice and representation. You can also claim for loss of income if you’re called up for jury service.

If you feel that you've been provided sub-par service or bought a defective product, your insurance should cover the cost of raising a dispute with the supplier or contractor—for instance, seeking to recoup fees for unfinished or poorly executed building work.

While you'll be able to enjoy financial protection relating to the many areas listed above, legal cover doesn't help with everything. Some exclusions include:

In most cases, legal expenses cover is an optional add-on to your standard buildings and contents insurance. The cost of this will vary between insurers and depend on the level of coverage. Adding legal cover to an existing policy is a simple process:

Some buildings and contents policies include legal cover as standard, so the first thing to do is to check your current policy.

If legal expenses cover isn’t included in your policy, shop around for the best deals. Although adding legal cover to existing buildings and contents policies is usually easier and cheaper, you aren’t restricted to your existing insurer.

Many companies offer standalone legal cover that you can purchase in addition to your existing policies. However, make sure to avoid any overlap in coverage so you're not paying twice for the same protection.

Once you've weighed up the options and decided on the best coverage that suits your property type, lifestyle, and potential legal risks, get in touch with the insurer to arrange your cover.

The cheapest home insurance usually offers legal cover at around £20 per year. Policies with higher coverage limits can be closer to £50 per year. Several factors determine the cost of legal cover insurance:

To make a claim using your legal cover, you'll need to follow similar steps to claiming on your home or car insurance:

Collate all the necessary information and have it ready to share with your insurer. This includes policy documentation, details of the dispute, any relevant evidence or documentation, and details of the parties involved.

As soon as you have the above prepared, get in touch with your insurer. The phone number to call is usually provided in the policy documents. Avoid any delays that may affect your claim.

Although now may be the time to seek legal advice, await your insurer's go-ahead. You risk incurring all costs if you seek counsel before your claim is approved. Your insurer may also work with you to arrange legal representation.

No, you don’t need to bundle your legal cover with your existing home insurance policy, although it’s often cheaper to do so. Insurers also offer standalone legal cover policies.

Legal expenses cover usually becomes effective immediately, but check your policy documentation or speak to your insurer to confirm if any waiting periods exist.

This is the age-old insurance balancing act. Just remember that home insurance and car insurance policies are bought every day by people who've never had problems with their homes or cars. But when unforeseen events arise, they're grateful for their prudence.