Legal Expenses Insurance

Written by

Gerry McNally

Home Insurance Expert

Reviewed by

Sophie Kamkar

Content Marketing Manager

What is legal expenses insurance?

Legal expenses insurance can help individuals get access to legal support when they need it. Basic legal expenses insurance is included in our home insurance policies, with an option to upgrade to full legal expenses insurance. It can not be purchased separately.  We have two types of legal expenses insurance: family legal and landlord legal expenses. This page explains family legal expenses. Review this separate page – landlord legal expenses – if you are a landlord. 

Family Legal Expenses  

Family legal expenses insurance could provide legal advice and representation for a number of different issues, including: 

1. Someone causing, or responsible for, damage to your property (e.g. a neighbour’s tree causing damage) 
2. Protection of your consumer rights (e.g. If you buy a faulty sofa and the seller is reluctant to put it right) 
3. Problems at work (e.g. if you are unfairly dismissed or discriminated against, including legal representation if the issue goes to tribunal) 
4. Personal injury (e.g. if you have suffered injury from an accident that wasn’t your fault and you are looking to claim compensation) 

At Homeprotect, our legal expenses insurance policy gives you access to telephone legal advice to help understand your rights and options on these legal matters and could pay up to a maximum amount of £25,000 (for our Basic cover) or £50,000 (for our Full cover) per claim to cover your legal costs and expenses, including your opponent’s legal costs if you lose.  

Do I Need Legal Expenses Cover? 

While it isn’t essential, legal expenses cover could save you a significant sum of money if you ever find yourself facing a legal dispute or in a position where you wish to pursue a claim. It can offer peace of mind that you will be covered for the cost of legal advice and representation in numerous circumstances (subject to claim limits), including employment disputes, property disputes and consumer disputes.  

Benefits include no upfront solicitors’ fees, as your insurer will pay the fees directly, and access to a legal advice helpline.  

To put things into perspective, look at potential scenarios you could find yourself in. If, for example, you are unfairly dismissed at work and it goes to tribunal, or a dispute arises over the sale of your home, resulting in a court case, it can be costly to fund. Legal bills can mount up quickly, reaching the thousands. By having the appropriate insurance in place, you will have some cover for these costs.    

Legal Expenses Cover Levels

All Homeprotect policies come with our Basic legal expenses insurance as standard, provided at no cost to our customers. We also have an upgrade option, Full legal expenses, which increases the amount you can claim for, as well as extending the type of legal situations you can claim for.  

Compare cover levels using the table below:

There are exclusions and limitations to the cover, including: 

• Issues that started before the date your cover begins 
• Legal costs paid out before your claim gets accepted 
• Claims which lack reasonable chances of success (in other words, where the lawyer appointed for you does not believe you will be more likely than not to win your case) 
• Costs which exceed your policy limit for any one claim 
• Fines, penalties, compensation or damages you are ordered to pay by a court or other authority 
• The use of your own lawyer. Our insurer will appoint a preferred lawyer or other professional for you. You may choose your own lawyer when legal proceedings start or if there is a conflict of interest, but you’d only be covered for the hourly rate which our insurer would have paid their preferred lawyer (currently £100 per hour)

Additionally, you are not covered for: 

1. Employment claims relating to an employer’s disciplinary and internal grievance procedures or settlement agreements while you’re still employed.
2.  Contract dispute claims: 
   • Where the amount in dispute, including VAT, is £100 or less (Full cover) or £250 or less (Basic cover) 
   • Which arise from a loan, mortgage, pension, investment or borrowing
   • Relating to a motor vehicle
   • Where you haven’t entered into the agreement in a personal capacity 
   • Basic Legal Expenses only: relating to building work or design where the contract value exceeds £5,000 (including VAT)  
3. Property protection claims relating to damage where the amount in dispute is £250 or less (Basic cover) or £125 or less (Full cover).
4. Personal injury claims relating to an illness or injury that happens gradually or those solely for psychological injury or mental illness. 
5. Legal defence claims relating to you driving a motor vehicle. 
6. Tax protection claims where you are self-employed, a sole trader or in a business partnership; or which relate to criminal investigations. 
7. You must pay the first £250 of any employment, contract or property protection claim. 

For full details of cover and exclusions please refer to the policy booklets links towards the bottom of this page.