Orlando Harmon
Legal protection insurance, also known as family legal expenses cover, is an optional add-on to your home insurance policy. It covers the cost of legal advice and representation for disputes, incidents or claims made against you. The cost of adding legal expenses cover is generally between £20 and £35 a year, although some providers charge up to £50. Legal expenses cover is a cheap way to pay for legal expertise, which can cost £300 per hour, but there are other options to get legal support, such as legal aid, trade unions, and pro bono legal advice.
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What You'll Learn
Cost-effectiveness of legal protection insurance
Legal protection insurance, also known as legal expenses insurance (LEI) or simply legal insurance, is a particular class of insurance that provides access to legal services and covers the legal costs of a dispute, regardless of whether the case is brought by or against the policyholder. The cost of adding legal expenses insurance to a policy is generally around £20-£50 a year, which is a reasonable price compared to the thousands of pounds one may have to pay for legal advice or representation in court.
Legal protection insurance can be purchased as an add-on to an existing insurance policy, such as home, motor, or travel insurance, or as a separate, standalone cover. When sold as an add-on, it typically only covers disputes strictly linked to the purpose of the main cover. For example, home-related claims such as disputes with neighbours or car-related disputes in the case of motor legal protection insurance. Legal expenses cover added to a home insurance policy can cost an additional £25 to £35 a year, depending on the level of cover provided.
Legal protection insurance covers the costs of unforeseen legal matters, including lawyer and court fees, witness expenses, translation costs, and expert fees. It provides financial protection against unexpected legal issues and allows policyholders to handle numerous legal situations without incurring high costs. It also promotes early legal action, as policyholders can consult with lawyers before concerns worsen, preventing legal complications.
Legal protection insurance is well-established in Europe, particularly in Germany and France, and has been developing beyond. It originated in 1911 when members of the 'Automobile Club de l'Ouest' were offered protection in case of fines or disputes in front of police courts. This basic legal protection was then extended to traffic accidents, leading to the first legal protection insurance policy in France in 1917. In 1928, a similar scheme was created by a motoring club in Germany, which allowed members of the general public to join, firmly establishing the idea of legal protection insurance available to the public.
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When to buy legal protection insurance
Legal protection insurance, also known as family legal expenses cover, is an optional add-on to your home insurance policy. It is generally not sold as a standalone product. It can be a cost-effective way to get legal help if you need it.
Legal protection insurance can be useful if you're a homeowner. There are several legal costs you might run into in the course of owning your own place. For example, someone might get injured on your property, and you could be held liable. Other scenarios include contractual disputes with builders or other professionals, issues with faulty goods, disputes arising from the sale of the property, tax investigations, or disputes involved with the removal process.
Legal protection insurance can also be useful if you're planning for big life changes, such as marriage, divorce, or adoption. These events often involve complex legal procedures and documents, such as prenuptial agreements, divorce settlements, and adoption agreements. It can also help you create essential life-planning documents, like a will, trusts, powers of attorney, and end-of-life documents.
Legal protection insurance can also be beneficial in unforeseen circumstances, such as traffic tickets, identity theft cases, or sudden deaths. It can also help with criminal charges such as manslaughter, involuntary manslaughter, negligent homicide, or vehicular homicide.
Legal protection insurance typically costs around £20-£50 a year, which is a reasonable price compared to the thousands of pounds you may have to pay for legal advice or representation in court. However, it's important to note that legal protection policies are designed to cover the cost of future claims, not past or ongoing cases.
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What legal protection insurance covers
Legal protection insurance, also known as family legal expenses cover, is an add-on to your home insurance policy. It covers the costs of legal fees incurred as a homeowner. The cost of adding legal expenses insurance to your policy is generally around £20-£50 a year, with some providers offering it for £19 or less. This is a reasonable price compared to the thousands of pounds you may have to pay for legal advice or representation in the event of going to court. Legal expenses cover can also be purchased after an event has occurred, which is usually tied to no-win, no-fee cases to help with costs if you lose.
Legal protection insurance typically covers legal proceedings relating to your home, employment, death, or personal injury. This includes contractual disputes with builders or other professionals, such as surveyors, and disputes over goods or services. It can also cover disputes over personal identity theft, online safety, and your vehicle.
Legal protection insurance can also provide financial support for disputes involving the will of your parents, grandparents, children, step-children, or adopted children. Additionally, it can cover the costs of pursuing legal action after disputes relating to your main home or personal possessions. For example, if someone becomes injured on your property and there is a claim for compensation, or if tradesmen do a poor job in your home but still demand full payment.
It is important to note that most legal protection policies sold alongside home insurance do not provide cover for cases arising out of car accidents or motoring disputes. If you require this type of cover, you can purchase it as an add-on to your car insurance. Additionally, legal protection policies are designed to cover the cost of future claims, not past or ongoing cases.
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Legal protection insurance claim limits
Legal protection insurance, also known as family legal expenses cover, is an optional add-on to your home insurance policy. It is designed to cover the costs of legal disputes or litigation relating to your home, employment, death, or personal injury. This includes lawyer and court fees, witness expenses, translation costs, and expert fees. The cost of adding legal expenses cover to your home insurance policy is generally around £20-£50 a year, although it can be as much as £35 a year. This is a relatively low price compared to the potential costs of legal advice or representation, which can reach £300 per hour.
There are different types of legal protection insurance, including Before-the-Event (BTE) insurance and After-the-Event (ATE) insurance. BTE insurance is purchased before any legal dispute has arisen and is the most common form of legal protection insurance. ATE insurance is purchased after a legal dispute has already been initiated and is typically only available for disputes with a high prospect of success.
The claim limits for legal protection insurance vary depending on the provider and the level of cover. Typically, the maximum amount that can be claimed under a legal expenses policy is £50,000 or £100,000. However, some providers offer higher limits, such as ARAG, which offers cover up to £500,000 for legal costs when defending a claim. It is important to carefully review the terms and conditions of your policy to understand the specific claim limits and exclusions.
It is worth noting that legal protection policies are designed to cover the costs of future claims, not past or ongoing incidents. Most policies also require policyholders to report a claim as soon as possible, and there may be time limits for certain types of claims, such as employment law disputes. Additionally, insurers may choose to drop a claim if they believe there are no "reasonable prospects of success", typically defined as a less than 51% chance of winning. Therefore, it is essential to carefully review the terms and conditions of your policy to understand your rights and responsibilities when making a claim.
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Alternative options for legal protection
Before deciding on legal protection for your house insurance, it is important to consider the other options available to you. Here are some alternatives to explore:
- Check your existing policies and services: Review your existing insurance policies, bank accounts, or other services to see if you already have any legal cover included. This way, you can avoid paying for duplicate coverage.
- After-the-event (ATE) insurance: ATE insurance is purchased after an incident has occurred and is typically tied to no-win, no-fee court cases. It ensures that your solicitor's fees are covered, even if you don't win your case. This option may be worth considering if you are facing a legal issue and don't already have legal protection in place.
- Using personal finances: If you prefer not to take out legal insurance, you can choose to use your own money to cover the costs of defending or pursuing a court claim. However, it's important to keep in mind that legal fees can quickly add up and become very expensive.
- Membership in a trade union: Becoming a member of a trade union can provide you with access to legal assistance for a range of claims, including employment issues and personal injury. This may be a cost-effective alternative to purchasing legal protection insurance.
- Standalone legal expenses cover: While it is rare to find standalone legal expenses insurance, it is not impossible. You may be able to arrange after-the-event legal expenses cover separately, often through a solicitor.
- Liability insurance: While liability insurance is different from legal expenses cover, it can provide protection in cases where you are held responsible for something that happened at your home or to other people's property. It is typically included as standard in your home insurance policy.
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Frequently asked questions
Legal protection on house insurance, also known as legal expenses cover or family legal protection, is an optional add-on to a home insurance policy that covers the cost of legal advice and representation for disputes, incidents, or claims made against you.
The cost of adding legal expenses insurance to your policy is generally around £20-£50 a year. Quotes will vary according to the level of cover provided, so it's worth shopping around for your policy.
Legal expenses cover is a cheap way to pay for legal expertise if you need it. However, it's worth noting that legal protection policies are designed to cover the cost of future claims, not past or ongoing cases. Before committing to insurance, it's good to know what your policy offers.
