Is It Worth Including Legal Expenses Cover?
If you are a landlord then you will no doubt have arranged suitable landlords insurance to protect a variety of risks such as your investment property being destroyed in a fire or being damaged due to a flood. There are a number of optional extras with such policies with one of those often being legal expenses cover.
So, let’s have a look at some of the things that the legal expenses option may cover you for: –
Recovering rent arrears
Many landlords are faced with one or more tenants falling behind in paying their rent and, in many instances, the landlord or the letting agent is able to resolve the matter with the tenant to the satisfaction of all parties. That may be to clear the rent arrears in one lump sum or over a period of time say on a monthly basis. However, there may be an occasion when the tenant is less than co-operative resulting in you having to take legal action.
The involvement of a solicitor can make such a positive difference in getting the tenant to pay the arrears. It may only require the solicitor to write a letter but it could also involve action being taken through the courts. Legal expenses cover could go some way to meeting the costs of involving a solicitor.
In a worst-case scenario, legal assistance could be available to help in the eviction of a tenant who does not pay his or her rent.
Damage to property
If a tenant has badly damaged a property then recourse may be required to pursue him or her through the courts to obtain financial redress and that could prove to be quite costly. Legal expenses cover could provide financial assistance towards meeting some of the costs of involving the legal profession in this matter.
If you discover that unauthorized people are occupying your investment property then you may need to take them to court to have them evicted. This could prove to be a costly process. Legal expenses cover could be used to provide legal support with some of the costs being met by this cover.
It is obviously up to you to decide if legal expenses cover is something that you would wish to include as an optional extra within a landlord insurance policy but we hope that the above is of some assistance in your decision making process.