Landlord legal expenses insurance is bought for possession proceedings and covers rather more than that, which most buyers never discover because the section is a line on a schedule rather than a document anybody reads. Knowing the full scope changes when you use it, and using it is what makes it worth its price.
Beyond possession: what else is usually included
Recovery of rent arrears and of damages for damage to the property. Defence of claims brought by a tenant, including disrepair and deposit disputes. Disputes with contractors over work at the property. Employment disputes where the landlord employs anybody. Frequently a tax investigation section and a legal advice helpline covering any of it.
The limits and how they apply
There is a limit per claim and often an aggregate for the year, and both are usually generous relative to the premium. Most policies apply the limit to legal costs rather than to any damages awarded against you, which is worth knowing: this section funds the fight, it does not pay the judgment.
The prospects of success test
Nearly every legal expenses policy funds a case only where it has reasonable prospects, commonly better than even. For possession that usually turns on whether the tenancy paperwork supports a valid notice, which is why deposit protection and compliance documents matter as much to this section as to the notice itself.
Instructing solicitors
The insurer's panel firm is normally required, at least until proceedings are issued. Instructing your own first is the commonest way to find costs outside the cover. Notify before you instruct anybody, which also gets you the helpline's view on whether a case is worth running at all.
Questions people ask about landlord legal expenses insurance
What does it cover besides possession?
Rent arrears recovery, damages for damage, defence of tenant claims including disrepair and deposit disputes, contractor disputes, employment disputes and often tax investigations.
Does it pay damages awarded against me?
Usually not. It funds legal costs. Damages for injury or damage would fall to the liability sections instead.
Why might they refuse to fund a case?
Most often the prospects of success test, which for possession usually turns on whether the tenancy paperwork supports a valid notice.
Can I use my own solicitor?
Normally the panel firm is required, at least until proceedings are issued. Notify before instructing anybody.