Legal Expenses is something we have always encouraged our clients to include on their home insurance policies. It covers you and your family who live at the property to pursue or defend a civil action for items such as residential disputes, consumer disputes, and tax and employment disputes.
Is there any cover as standard?
Our Home Insurance with RSA under our Scheme includes a Lawcare Advice service as standard. This is available so that you can speak to a legal expert and receive advice about a private legal matter but does not pay for legal fees. The contact information is in your policy wording but do call us if you are unsure.
What is my cover if I have Legal Expenses on my schedule?
- The sum insured is £50,000 for any one claim
- Accidental Death or Bodily Injury - client and family who reside
- Consumer Protection - disputes over contract for buying, selling or renting goods or services
- Residential - infringement of legal rights relating to home, e.g. boundary disputes
- Employment - disputes including unfair dismissal
- Tax - Inland Revenue deciding to undertake an in-depth investigation into personal tax affairs
Legal expenses does have quite a few exclusions but is a very useful cover as, without it, the prospect of taking or defending legal action is prohibitive.
What are some of the important exclusions?
- Cases without reasonable chance of success
- Events reported more than 6 months after it happened
- Events arising from own intentional wrongdoing
- Legal disputes prior to the start of your policy
- Any costs incurred without the insurer's written consent
- Any money-making activities (other than under contract of employment)
- Matters concerning leases, tenancies or licence to occupy
- Motor vehicles/parts/accessories (other than death or bodily injury whilst getting in or out of vehicle)
- Building works/extensions (other than common home improvements, e.g. installing double glazing or replacement kitchen/bathrooms etc)
- Legal proceedings between existing and former members of own household, e.g. custody, access or maintenance (other than accidents involving motor vehicle)
- Defending civil legal proceedings connected with death, illness, injury to anyone, professional liability, loss of or damage to property
- Where the amount in dispute if less than £250 (bodily injury or consumer protection)
The Legal Expenses (LE) that we offer is only applicable to the property insured on the policy. It also will not insure a property that is let to others. If you have LE on your main residence and then let the property out mid-way through the policy, we will have to delete the cover.
Legal Expenses is also available for Car Insurance and this is solely to assist in recovering uninsured losses from a third party. Legal Expenses for this purpose is included as standard on all of our car insurances under the Select Scheme.