13th April 2015
Homeowners should not overlook optional legal expenses cover on their buildings or contents insurance, comparison site Gocompare has urged.
New analysis of household-related legal expenses insurance by the group revealed that most policies provide cover for a wide range of non-home related problems including contract disputes, personal injury claims, employment disputes and clinical negligence as well as property protection.
However, legal expenses cover is only automatically included within 22% of home contents or building insurance policies. In the majority of cases it is sold as an optional extra.
It is designed to protect you against the costs of being sued or having to make a claim against someone else in a range of circumstances. In addition to covering legal proceedings arising from the insured home – such as nuisance, squatters or trespass – policies can include cover for personal injury, employment disputes, contracts for the sale and supply of goods and services (including holidays) and contracts related to buying or selling your property.
The research found some 22% of buildings and 22% of contents insurance policies automatically include legal expenses cover as a standard policy feature. In addition, most buildings and contents insurance offer legal expenses cover as an optional extra. Premiums to add legal expenses cover range from £2.99 to £45; typically cover costs are between £15 to £30.
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Ben Wilson, from Gocompare.com Home Insurance, said: “Legal expenses insurance bought with or alongside your home insurance can provide valuable cover. It is designed to pay for legal costs in pursuing a court case or claim such as a boundary dispute with a neighbour or a personal injury claim – which otherwise you may be unable to afford.”
“Bought alongside home insurance, cover is relatively cheap, but premiums and what’s insured varies considerably between policies, so it’s important to compare both the cost and content of the policies on offer. In addition to checking exactly what is included in a policy, it’s also important to know what’s not covered.”