What is legal expenses cover on home insurance?
Key takeaways
Legal expenses insurance helps cover the costs of legal advice and representation if you find yourself in a legal dispute regarding your home or job
Liability insurance cover is different to legal expense cover, as liability insurance protects you against compensation payouts if you're sued
Legal expenses insurance costs £9.24
^ per year, on average, when adding the cover as an add-on to your home insurance quote
What is legal expenses insurance?
Legal expenses cover, also known as family legal protection or legal expenses insurance, covers the legal costs of being sued or making a claim against someone.
This cover is included on some home insurance policies and sold as an add-on to others.
📣 Did you know? You may pay up to £566 an hour in London, or up to £288 an hour outside London, for a solicitor with more than eight years’ experience, according to UK Government guidelines.
Do I need home insurance legal cover?
Legal expenses cover is relatively cheap compared to the cost of hiring a solicitor, and can be a big help if you find yourself in a legal dispute, such as:
A job contract dispute
Neighbour dispute
Property dispute
It can cover lots of other scenarios, such as medical or clinical negligence and issues with faulty goods.
💡 Top tip: It’s worth checking whether you already have legal expenses insurance provided with your bank account, credit or life insurance, or whether a family member has cover, and how this compares to legal expenses cover with your home insurance.
What does home insurance legal expenses cover me for?
Legal expenses typically covers legal issues such as:
Boundary disputes
Such as land claims or property damage from fallen trees.
Noise complaints
If you have noisy neighbours or a noise complaint is made against you.
Buying or selling a house
Disputes during or after property transactions.
Disputes about goods and services
For issues with damaged products or poor contractor work.
Personal injury claims
If someone is injured on your property or you're involved in an accident caused by another party.
Loss of income
Cover for the financial impact of jury service.
Employment disputes
Legal help for cases of unfair dismissal or discrimination at work.
Medical negligence claims
Seeking compensation for malpractice.
Tax investigations
Defence costs during HMRC investigations.
Identity fraud
If you suffer a financial loss as a result of an organisation being careless with your personal data.
💡 Top tip: Legal expenses cover can vary significantly by provider so it's essential to read policy documents carefully to understand what legal assistance is included.
What am I not covered for with legal expenses insurance?
Legal expenses insurance doesn’t cover every legal situation, exclusions include:
Pre-existing disputes prior to the policy
Issues involving the government or local councils
Car-related issues, although you can get legal cover with your car insurance too
Libel and slander cases
Matrimonial disputes, divorce proceedings and child custody arrangements
Insurers also tend to exclude cases where the chance of success is deemed low or the dispute involves a sum that doesn't justify the legal costs.
💡 Top tip: Be aware that you can’t typically choose your own solicitor, you’ll usually need to use your insurance company’s legal panel.
Is legal expenses insurance the same as liability cover?
No, the key differences between legal expenses insurance and liability cover are:
Legal expenses insurance: Covers the cost of legal representation
Liability cover: Protects you against compensation payouts if you're sued for personal injury, property damage, or losses as a result of your business activities
How much will I pay for legal expenses insurance?
Legal expenses insurance often costs under £35 per year as an optional extra, and covers up to £50,000 or of legal expenses. Some insurance providers will cover up to £100,000 or legal expenses.
In some instances, home insurance policies include legal expenses as standard.
Policies usually include an excess, typically around £100.
How can I find legal expenses cover?
If you're looking for home insurance with legal expenses cover, MoneySuperMarket compares more than 55 insurance providers, helping you find the right policy.
The comparison tool indicates whether legal expenses are included or available as an add-on, providing a convenient way to find suitable insurance policies.
Frequently asked questions
What happens if I don't have legal cover?
If you don't add legal expenses cover to your home insurance, it simply means that you will have to cover any legal costs related to your home without the help of your home insurance. This can be expensive, especially if your case takes a long time to come to a resolution. In comparison, the added cost of legal cover to your home insurance isn't nearly as expensive, so it's worthwhile to consider adding it to your policy.
Can I buy legal expenses cover separately?
It is possible to by standalone legal expenses insurance, but typically it's bought as an add-on with a car or home insurance policy. This is because most people don't usually need a standalone policy. Adding legal cover to your home insurance gives you peace of mind without having to worry about managing and paying premiums for another insurance policy.
How do I access legal advice provided by my home insurance?
The steps you need to take will depend on your provider. All the information you need to access extra services included with your home insurance should be outlined in your policy documents. Your provider may also have information on their website about how access their legal advice service.
If you're still having trouble, you can always contact your provider directly by phone or through their website
Will legal expenses insurance cover compensation payments?
Legal expenses insurance won't usually cover compensation payments if you are found liable for injury to another person or property damage. If someone makes a personal injury claim against you, your legal cover will cover the legal costs associated with your case. However, it won't cover compensation payments if you are found responsible.
What is 'after the event' legal insurance?
Most home insurance policies include 'before the event' (BTE) insurance, covering incidents that occur while the policy is active.
'After the event' (ATE) legal insurance can be bought after an event that has triggered a legal case, but before major legal expenses have been incurred. It’s usually used to cover the other person’s legal fees if you lose the case.
Legal expenses insurance is a type of BTE insurance.
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