Landlord legal insurance funds the legal costs of disputes arising from letting a property. It is one of the cheapest sections on a landlord schedule and one of the most used, because the main thing it pays for, recovering possession, is something a landlord may have to do once every few years and cannot usefully do without a solicitor.
Possession proceedings, which is the main event
Serving notice, issuing a claim, attending a hearing and instructing enforcement if the tenant does not leave. The costs mount at each stage and none of them is recoverable from a tenant who has no money. This is the section's core purpose and it is why it is usually bundled with rent guarantee: the two answer the same problem from different sides.
The other disputes it typically covers
Recovery of rent arrears and of damages for damage to the property. Defence of a claim brought by a tenant, for example about disrepair or about a deposit. Disputes with contractors over work done at the property. Some policies include tax investigation cover and a legal helpline, which is more useful than it sounds for a landlord facing an unfamiliar notice period.
The conditions that matter
The insurer's solicitors usually have to be used. There is normally a prospects of success test, commonly that the claim must have a better than even chance. The tenancy paperwork has to be in order, because a landlord who cannot serve a valid notice has no prospects. And notification has to be prompt, before you instruct anybody yourself.
Why it is worth its price
The premium is small relative to the cost of a single contested possession action, and the alternative for most landlords is either paying privately or attempting it themselves. For a landlord with one or two properties, this section converts an occasional unbudgeted several thousand pound problem into an annual figure that barely registers.
Questions people ask about landlord legal insurance
What does landlord legal expenses insurance cover?
The legal costs of possession proceedings, recovery of arrears and damages, defence of tenant claims, and often contractor disputes and a legal helpline.
Can I use my own solicitor?
Usually not. Most policies require the insurer's panel firm, and instructing your own first can mean the costs are not covered.
Is there a test before they fund a case?
Normally a prospects of success test, commonly a better than even chance. Tenancy paperwork in order is what usually decides it.
Is it worth adding?
For most landlords yes. It is one of the cheapest sections and possession proceedings are the most likely large unbudgeted legal cost.