Do I need home insurance with legal cover?
If you need legal advice, or have a problem you need help resolving, home insurance legal cover could come in handy. Find out how it works with our handy guide.
If you need legal advice, or have a problem you need help resolving, home insurance legal cover could come in handy. Find out how it works with our handy guide.
60-second summaryNeed the key facts in a hurry? Here are the main pointers on legal expenses cover with home insurance:
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What is legal expenses insurance?
Legal expenses cover – also known as family legal protection or legal expense insurance (LEI) – is a type of cover typically either included with or added to your home insurance policy.
It could cover your legal costs for a range of potential issues, including:
- Legal action against a nuisance neighbour
- Employment disputes, such as unfair dismissal
- Personal injury
- Contract disputes
- Medical negligence.
Do I need legal cover on home insurance?
Though legal expenses insurance isn’t compulsory, in certain circumstances, it could prove invaluable.
If you want to bring a legal case against someone, your costs could be covered – helping you avoid a hefty solicitors bill.
When you consider that solicitors’ fees can range from £200 to £500 an hour, access to a dedicated legal helpline alone could make it worthwhile.
However, it’s important to know that you aren’t guaranteed legal representation. You’ll only be covered if you have a ‘reasonable chance’ of winning your claim.
What’s included in the legal protections of home insurance?
Taking out legal cover with your home insurance could offer protection for:
- Personal injury claims
- Employment disputes, such as discrimination
- Disputes over faulty or damaged goods
- Issues with neighbours, such as noise and boundary disputes
- Disputes related to buying or selling a house
- Tax disputes
- Medical negligence claims
- Loss of salary if you’re called up for jury service
- Identity fraud.
The amount of legal cover offered is typically between £50,000 and £100,000. Cover limits vary depending on the insurance provider, however. So always check the policy details carefully.
Many insurance providers offer a 24/7 legal helpline, as well as access to downloadable legal documents and templates.
Terms and conditions differ among providers, so read the small print before you buy.
What’s not included in the legal assistance of home insurance?
Home insurance legal insurance typically won’t cover:
- Compensation payments
- Ongoing issues and disputes that began before your policy started
- Legal claims with less than 51% chance of success
- Motoring claims – your car insurance might include motor legal protection
- Divorce and child custody
- Libel cases
- Disputes that can be covered by Legal Aid, such as a criminal trial
- Cases that aren’t cost effective – i.e. where the legal fees would cost more than the payout you’re likely to get.
Is legal expenses insurance the same as liability cover?
No, legal expenses insurance and liability insurance are two different types of cover:
- Legal expenses insurance – could pay solicitor fees if you need to take legal action or defend a claim made against you.
- Liability insurance – could help pay compensation if someone brings a claim against you. For example, if you damage someone’s property or someone is injured in your home.
Home insurance usually includes liability insurance as standard. But if you work or run a business from home and have clients visiting, you’ll probably need extra cover.
Can legal expenses cover be added to my home insurance policy?
Yes, legal insurance cover can usually be added to your home insurance as an optional extra. Some policies offer legal cover as standard, so check to see if it’s already included.
Legal protection may also already be included as part of a bank account or credit card. So, check to avoid doubling up on cover.
Just remember that any legal expense cover you have with your car insurance will only apply to motoring claims.
How much does legal expenses insurance cost?
Costs vary, depending on the level of cover. But it’s typically in the region of £25 to £35 a year.
When you consider how much it could cost to sue someone, it could prove to be excellent value for money. But before you buy, you need to consider how likely you’d be to make a claim.
It’s worth noting that some policies carry an excess, which could be around the £100 mark. This is to weed out unnecessary claims.
What are the alternatives to home insurance with legal cover?
You may find that some providers let you add legal cover to other products, such as life insurance.
Certain bank accounts and credit cards may even come with a level of legal protection.
And although legal cover isn’t commonly bought as a standalone product, there are some insurance providers who offer it.
If you need legal advice and can’t afford to pay a solicitor, there are some alternatives to insurance:
- Depending on the case and your financial situation, you may be eligible for legal aid
- If you’re a member of a trade union, they may provide you with legal assistance
- Solicitors will sometimes take cases on a ‘pro bono’ (free) basis
- Law centres may be able to provide you with legal advice.
Where can I find home insurance with legal expenses cover?
You can compare home insurance with legal cover with Compare the Market. Just tell us a bit about you, your home and any features or add-ons you want to include.
We’ll then show you a range of home insurance quotes to choose from.
Anna McEntee – Home, travel and pet insurance expert
Anna’s all about delivering fantastic insurance products at a great price. Value is the most important thing for Anna, as she cuts through the jargon and finds what’s most important and worth your hard-earned money.
Rachel Lacey - Insurance and money expert
Rachel’s a self-confessed money nerd who’s been writing about personal finance for more than 20 years. She spent 17 years writing for Moneywise, including a few years as Editor, and likes making complicated subjects like insurance, pensions, investing and tax, easy for people to understand.
Frequently asked question
Can I remove legal expenses cover from my home insurance policy?
Yes, you should be able to if you added legal expenses cover to your policy as an optional extra. Give your insurance provider a call to get the ball rolling.
If your policy includes legal expenses cover as standard, you won’t be able to remove it.
Will I need to pay an excess to use legal expenses cover?
Perhaps, yes. Whether you’ll need to pay an excess will depend on your policy, so read the small print carefully.
You can find home insurance policies that don’t charge an excess on legal expenses cover.
I have legal expenses cover. How do I access legal advice?
Insurance providers usually have a helpline to call if you need legal advice. They’ll assess your situation and recommend next steps.
If you can’t find a helpline number, give your insurance provider a call on their main contact number.
What is ‘after the event’ insurance?
Legal expenses cover is usually bought ‘before the event’ or BTE, as an add-on or as part of a home insurance policy. It’s there to protect you in case you need legal representation.
‘After the event’, or ATE, cover is bought after something has happened. And it’s usually tied into no-win, no-fee cases.
Solicitors may ask to buy ATE insurance on your behalf. That way they can make sure their fees are covered, even if they don’t win.
ATE can also cover the other party’s legal costs, if necessary.
