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
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 £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's 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.
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:
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, 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 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: Liability cover on home insurance can help cover compensation claims if you’re held legally responsible for injuring someone or damaging their property
How much will I pay for legal expenses insurance?
Legal expenses insurance often costs under £35 per year as an optional extra - in fact, 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.
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.
However, you may be able to get legal help through:
Legal aid
A trade union
Pro bono (free) legal advice
Law centres
Can I buy legal expenses cover separately?
It is possible to buy 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 to access legal support will depend on your provider but they typically provide a legal advice helpline. There may also be legal documents and templates which you can access.
You can usually find the information you need to access your insurers legal advice service in:
Your policy documents
On your insurance company’s website
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?
No, home legal expenses cover won't cover any compensation payments that you are ordered to pay if you lose your legal case.
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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Emma Lunn
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Emma has written about personal finance for almost 20 years, with a career spanning several recessions and their inevitable consequences. Emma’s main focus is helping people learn to manage their...
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Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
