Legal expenses insurance - worth it?

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    Legal expenses insurance - worth it?

    I have been taking out legal expenses insurance for the last few years for my BTL property.

    I am wondering what the point of it is really. I would only ever need to use it under the following scenarios:

    1) rent arears
    2) eviction
    3) property damage

    In all the above cases I can just as easily do this myself, either issuing section 21 notices or doing a money claim online with very little upfront cost.

    Since I vet my tenants well enough, only let to professional tenants who would worry about credit history etc, I am now wondering whether to forget about this insurance. From what I read the insurance company will have you go through a lot of hurdles before any help and any help will be very low quality as to not be worth it at all.

    Any thoughts?

    #2
    How about if tenant sues you?
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      It's like all insurance, it's only value for money if you use it. I don't have it but I only use insurance where it's a legal requirement or it may be so much it would bankrupt me. Others will thing differently.

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        #4
        The building has normal buildings insurance which includes personal liability insurance.

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          #5
          Originally posted by leasee123 View Post
          The building has normal buildings insurance which includes personal liability insurance.
          'The building'?

          You mean tenant sues you for something he hurts himself on in your flat, and you think the freeholder's building insurance will pay to defend you?
          To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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            #6
            Why wouldn't the insurance be valid?

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              #7
              Originally posted by leasee123 View Post
              Why wouldn't the insurance be valid?
              Because it's for the common areas. Not the individual flats.
              To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

              Comment


                #8
                I always have Legal Expenses Insurance - and often it is included for free. I have had cause to use the help line a couple of times, had a rent arrears paid because they felt it cheaper than going to court & then had one really big claim when we did have to go to court.

                Legal fees mount up so quickly and are so huge that I would not go without this - ever.

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                  #9
                  Most advice is free ,and insurance cover will not fund legal action .It may be included at no extra charge bit is never free.

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                    #10
                    We have the lot, building, landlord fixtures & fittings, legal expenses, directors and officers, management liability, rent guarantee, re-housing cover

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                      #11
                      Originally posted by SouthernDave View Post
                      We have the lot, building, landlord fixtures & fittings, legal expenses, directors and officers, management liability, rent guarantee, re-housing cover
                      What percent of turnover is that\?

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                        #12
                        Originally posted by gnvqsos View Post

                        What percent of turnover is that\?
                        4%… bargain for total peace of mind

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                          #13
                          That's £3000 pa.Have you ever claimed.

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                            #14
                            Originally posted by gnvqsos View Post
                            Most advice is free ,and insurance cover will not fund legal action .It may be included at no extra charge bit is never free.
                            I disagree - legal insurance covers you exactly for the. I know - I claimed!!

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                              #15
                              Originally posted by jpucng62 View Post

                              I disagree - legal insurance covers you exactly for the. I know - I claimed!!
                              How much was
                              A the annual premium
                              B the excess
                              C the claim pay out
                              Thanks

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