What is legal expenses cover on home insurance?

Key takeaways

• Legal expenses insurance can help cover legal advice and representation for certain disputes, such as issues involving your home, employment, consumer rights or personal injury

• Legal expenses insurance costs £9.24^{^}per year on average when adding the cover as an add-on to your home insurance quote

• Policies have exclusions, claim limits and eligibility requirements, so check the policy wording before assuming a dispute is covered

• Some policies have waiting periods and won't cover disputes that started before you took out the cover

What is legal expenses insurance?

Legal expenses cover, also known as family legal protection or legal expenses insurance, covers certain legal costs when you're making or defending a claim.

This cover is included on some home insurance policies and sold as an add-on to others.

It can help pay for things such as legal advice, solicitor fees and other eligible legal costs, depending on the policy.

📣 Did you know? You may pay up to £579 an hour in London, or up to £295 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 isn't mandatory, but it can be a useful way of protecting yourself against potentially expensive legal costs if you find yourself in a covered dispute, such as:

• A job contract dispute

• A neighbour dispute

• A 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.

How much could legal fees cost without legal expenses cover?

Legal fees you might face can vary from a few hundred pounds to tens of thousands, depending on the case at hand.

Figures from Barrister Connect estimate the average cost of a boundary dispute to be anywhere between £5,000 and £15,000 through mediation, but if the matter goes to court then costs could hit £20,000.

Solicitors could charge anywhere from £900 to over £8,000 for legal costs related to employment tribunals, but a solid legal expenses cover policy can help you avoid such high fees.

What does home insurance legal expenses cover me for?

Legal expenses typically covers legal issues such as:

💡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, and often come with the following exclusions:

• 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. This is usually assessed by the insurer's legal panel, and they can withdraw cover if the case no longer meet's the policy's requirements.

💡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 there a waiting period for legal expenses insurance?

Some legal expenses policies have a waiting period before you can make certain types of claims. The length of any waiting period will depend on your insurer and the type of dispute but the wait is typically 90 days to six months.

You generally won't be able to take out legal expenses cover after a dispute has already started and expect it to cover that existing problem. Pre-existing disputes are commonly excluded.

Check your policy documents for details of any waiting periods that apply.

How do I make a legal expenses insurance claim?

If you have a legal dispute and think your policy might cover it:

1. Check your policy: Look at your policy documents to see whether the dispute is covered and whether any waiting period or other conditions apply

2. Contact your insurer: Get in touch with your insurer or legal expenses provider as soon as possible

3. Explain what happened: You may need to provide details of the dispute and relevant documents or evidence

4. Let the insurer assess your case: The insurer will check whether the dispute meets the policy's requirements, including whether there is a reasonable chance of success

5. Get legal assistance: If your claim is accepted, you'll usually be given access to legal advice or a solicitor through the insurer's approved legal panel

💡 Top tip: Contact your insurer before instructing a solicitor or starting legal proceedings. If you arrange legal work yourself without checking your policy first, you may not be able to recover those costs.

Can I choose my own solicitor?

You’ll usually initially be referred to a solicitor from your insurance company's approved legal panel.

However, you may have the right to choose your own solicitor in certain circumstances, particularly once legal proceedings have started.

Check your policy wording or ask your insurer about your options before appointing a solicitor yourself.

What is the legal expenses claim limit?

Legal expenses policies have a maximum amount they'll pay towards eligible legal costs.

Legal expenses cover usually provides up to £50,000, although some providers offer up to £100,000 of cover.

Check whether the limit applies to each claim or across the policy, and whether certain types of legal costs have separate limits or conditions.

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 eligible legal costs, such as legal advice and representation, when you're pursuing or defending certain claims

• Liability cover: Liability cover on home insurance can help cover compensation claims if you're held legally responsible for injuring someone or damaging their property

For example, if a visitor is injured in your home and holds you responsible, your liability cover may help with an eligible compensation claim.

Legal expenses cover, meanwhile, could help with the legal costs involved in certain other disputes.

How much will I pay for legal expenses insurance?

Legal expenses insurance often costs under £35 per year as an optional extra. MoneySuperMarket data shows that the cost of adding legal expenses cover was £9.24^{^}.

In some instances, home insurance policies include legal expenses as standard, and there's usually an excess payment of typically around £100.

When comparing policies, don't just look at the price. Check the level of legal cover, claim limit, excess, exclusions and any waiting periods.

Is legal expenses insurance worth it?

Legal expenses cover isn't compulsory, but it can provide useful financial protection if you need legal advice or representation for a covered dispute.

Whether it's worthwhile will depend on the cost of the cover, the disputes included and the maximum amount the insurer will pay.

It's also worth checking whether you already have legal protection elsewhere before paying for additional cover.

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.

Our comparison tool tells you whether legal expenses are included or available as an add-on, providing a convenient way to find suitable insurance policies.