Why landlords need legal expenses cover insurance

As a landlord, maintaining a positive relationship with each of your tenants will naturally be high on your list of priorities. Unfortunately, this is not always possible and you may at times find yourself at loggerheads with tenants or locked into an unwanted dispute.

In the worst cases, these disputes could lead to you having to pursue legal action against your tenants – a situation no landlord wants to find themselves in. However it’s essential to prepare and protect yourself against such eventualities to ensure you’re not left with any unwanted legal bills.

Whether it’s chasing unpaid rental arrears, or evicting a problem tenant – there are a number of reasons you may require legal assistance when it comes to your property. For peace of mind and security, it’s important to cover yourself with legal expenses insurance.

What does this type of cover provide?

This type of cover entitles you to significant financial assistance when it comes to legal costs relating to your property. It will also help with any potential legal proceedings or court action that may follow tenant disputes.

Why do I need it?

Landlord legal expenses cover is essentially an add-on to your existing landlord policy. This is often offered as an addition to landlord liability insurance or buildings insurance.

This type of cover entitles you to significant financial assistance when it comes to legal costs relating to your property. It will also help with any potential legal proceedings or court action that may follow tenant disputes.

You will also be covered for potential defence costs, should a tenant accuse you of breaching your legal obligations as a landlord or even if you find yourself subject to a HMRC tax enquiry.

What else does this policy cover?

Landlord legal expenses insurance can cover a number of situations such as recovery of rent arrears, recovering costs associated with malicious damage, or neglect by the tenant. In addition they can be used to cover legal expenses involved in evicting problem tenants or occupants illegally on the property.

The benefits

Finding the right policy is paramount, and if you do you can expect some great benefits from this particular scheme. Some will offer wide cover for any breach of tenancy agreement with no excess on Legal Expenses or Hotel Expenses.

Some policies will offer x amount of pounds for legal cost for defence or pursuit with cover of legal costs incurred in tenant disputes. More and more policies are offering paperless application and immediate cover premiums for small amounts per annum.

There are some great benefits to this insurance and what it covers. However essentially it’s just a standard requirement for any landlord who wants to be fully prepared and protected for any possible circumstance – so be sure to choose a policy that suits you.