Legal cover on house insurance is an optional add-on that covers the legal expenses you may incur in certain situations. It can help you deal with issues such as employment disputes, contract disputes, personal injury, and property protection.
In this article, we will explain what legal cover on house insurance is, what it typically covers, how it works, and whether it is worth it.
What is Legal Cover on House Insurance?
Legal cover on house insurance is an extra feature that you can add to your home insurance policy for an additional cost. It covers the legal costs of pursuing or defending a claim in court or through alternative dispute resolution methods. Legal costs can include solicitor fees, court fees, expert witness fees, and compensation awards.
Legal cover on house insurance can help you with various legal issues that may arise in relation to your home, your employment, your personal life, or your consumer rights. For example, if you have a dispute with your employer, your neighbor, your builder, or your retailer, legal cover on house insurance can help you pay for the legal advice and representation you need to resolve the matter.
What Does Legal Cover on House Insurance Typically Cover?
The exact scope of legal cover on house insurance may vary depending on the provider and the policy, but it usually covers the following situations:
- Employment disputes: If you have a problem with your employer, such as unfair dismissal, discrimination, harassment, or breach of contract, legal cover on house insurance can help you take legal action against them or defend yourself if they take legal action against you.
- Contract disputes: If you have a dispute with a person or a company over a contract that you have entered into, such as a contract for goods, services, or property, legal cover on house insurance can help you enforce your rights or defend yourself if they sue you for breach of contract.
- Personal injury: If you suffer an injury or illness that was caused by someone else’s negligence, such as a road accident, a slip, and fall, or a medical error, legal cover on house insurance can help you claim compensation from the responsible party or defend yourself if they claim compensation from you.
- Property protection: If your property is damaged or threatened by someone else’s actions, such as vandalism, trespassing, nuisance, or boundary disputes, legal cover on house insurance can help you seek an injunction, damages, or other remedies from the perpetrator or defend yourself if they take legal action against you.
How Does Legal Cover on House Insurance Work?
Legal cover on house insurance works in the following way:
- Access to legal advice: If you have a legal issue that falls within the scope of your legal cover on house insurance, you can contact your provider and get access to a legal helpline that can give you initial advice and guidance on how to proceed. The legal helpline is usually available 24/7 and staffed by qualified lawyers or legal experts.
- Free legal documents: If you need to draft or review a legal document, such as a letter, a contract, a will, or a power of attorney, legal cover on house insurance can provide you with free templates and samples that you can use or customize to suit your needs. You can also get feedback and suggestions from the legal helpline on how to improve your document.
- Coverage for legal costs: If you decide to pursue or defend a legal claim, legal cover on house insurance can cover the legal costs that you may incur, up to a certain limit. The limit is usually between $10,000 and $100,000, depending on the provider and the policy. You may also have to pay an excess, which is a fixed amount that you have to pay before the provider pays the rest. The excess is usually between $50 and $500, depending on the provider and the policy.
Is Legal Cover on House Insurance Worth It?
Legal cover on house insurance can be a useful and affordable way to protect yourself from the potential legal risks and costs that you may face in your daily life. However, whether it is worth it or not depends on your specific needs and circumstances. Here are some factors that you should consider before deciding to add legal cover on house insurance to your policy:
Your Existing Cover
You may already have some legal cover from other sources, such as your car insurance, your travel insurance, your trade union, or your employer. You should check what these sources cover and whether they overlap with your legal cover on house insurance. You may not need to pay for duplicate cover or you may want to choose the one that offers the best value and benefits for you.
Your Likelihood of Facing Legal Issues
You should assess how likely you are to encounter legal problems that would require legal cover on house insurance. For example, if you have a stable and secure job, a good relationship with your neighbors, a reliable and trustworthy contractor, and a safe and well-maintained home, you may have a low risk of facing legal disputes. On the other hand, if you have a precarious or contentious employment situation, a problematic or hostile neighbor, a shady or incompetent builder, or a vulnerable or damaged property, you may have a high risk of facing legal issues.
Your Ability to Afford Legal Costs
You should also consider how much you can afford to pay for legal costs out of your own pocket if you do not have legal cover on house insurance. Legal costs can be very expensive and unpredictable, especially if your case goes to court or involves complex or lengthy proceedings. You may end up paying thousands or even tens of thousands of dollars for legal fees, court fees, expert witness fees, and compensation awards. If you do not have enough savings or income to cover these costs, you may face financial hardship or even bankruptcy. Legal cover on house insurance can help you avoid or reduce these costs and give you peace of mind.
Your Preference and Comfort Level
Finally, you should also consider your personal preference and comfort level when it comes to dealing with legal matters. Some people may prefer to handle legal issues on their own or with the help of friends or family, while others may prefer to have professional and expert assistance and representation. Some people may feel confident and comfortable in navigating the legal system and negotiating with the other party, while others may feel intimidated and overwhelmed by the legal process and the potential outcomes. Legal cover on house insurance can provide you with access to legal advice and support that can make you feel more informed and empowered in handling legal issues.
