Landlord Insurance – What Does Legal Expenses Cover?

As a landlord, having cover for legal expenses can save you huge money, so read on to find out what legal expenses actually does cover and why you need for your small business.

What is legal expenses used for?

One of the best ways to protect yourself against a court action if you’re taken to court for damages, is having legal cover included in your landlord insurance policy. However, the wrong policy can lead you paying lawyers fees at your own expense.

About legal protection and how it’s important!

Pursuing outstanding rent arrears from the tenant

Landlords find it difficult to get money back from tenants, the only way to get your money back without talking to the tenant is court action. Your policy will cover up to £50,000 worth of court expenses if you need to go to court to chase monies owed.

This is a common problem for landlords and a difficult one, that’s why insurance companies offer this kind of cover, either as part of your policy or separate, depending on the company you take cover out with.

Getting back contents and buildings from a tenant

If any tenant takes any of your contents, while they rent a property from you, you can take court action on them. Items like, washing machines, fridges and sofas are very expensive to replace if they get stolen.

Your policy will pay for a sheriff court to bring that tenant to court to explain their self and pay for the missing items of furniture. Usually when they get a letter from your solicitor, they could bring the items back without going to court.

A solicitor’s letter is sometimes all it takes.

Defending against civil or criminal charges

If you have been managing your business the wrong way, like not paying back deposits, the previous tenant can ask the court to take action against you in a civil courtroom.

If you do anything criminal against the tenant, they can also take action on you and ask the court to seek compensation from you. Legal issues work both ways, you and the tenant have rights and you both have the right to defend them.

Is legal cover standard on my policy?

It may just be, this depends on the company that you’re covered with. Sometimes legal cover is another cost to you, but it is not that expensive to add-on to your policy, may be £50 per year or something like that.
By Michael Garcia