What Do Legal Expenses Cover Under My Home Insurance
If youre a new homeowner, or are renewing your home insurance for the first time in a while, its important to make sure youre taking out the right home insurance for you. There are lots of different types of home insurance: from , to contents insurance, to tenants insurance. Each policy specifically caters for different needs.
Were sure youll have lots of questions along your home insurance journey. Questions such as, can you insure a vacant house? Our goal is to help you answer your questions as best we can, so you can make an informed decision when choosing the best home insurance for you .
In this article, were going to take at look legal expenses for your home insurance including what is and isnt covered. Let’s begin!
Legal expenses is not a legal requirement, but may be included as standard, or can be added as an optional extra to your buildings or contents insurance policy.
Legal expenses essentially gives you access to legal representation in the event of specified legal disputes. For an insurer to accept your legal claim, there is also usually a need for there to be a reasonable prospect of success. This will usually be on the advice of your insurers solicitors, and there often needs to be more than a 50% chance of success for your claim to be accepted.
If youre unsure whether you already have this cover, its worth speaking to your insurer to double check.
What Is Not Covered By Personal Liability Insurance
Your homeowners or renters insurance will cover certain personal liability claims, but there are other claims that may not be covered. A few common examples include:
- Liability that results from a car accident. These claims should be covered by your car insurance.
- Bodily injury or property damage caused intentionally by you or a family member.
- Injuries or damages sustained by you or other covered residents in your home.
- Bodily injury or property damage arising out of any business conducted by you or arising out of your professional activities. Claims that arise while you are engaging in any business-related activities should be covered by a business insurance policy.
Does My Car Insurance Cover A Rental Car
There are numerous reasons you may need to rent a car in the not-so-distant future.
Youll most likely want to rent a new ride if youre planning on going on a trip to another province or country. On the other hand, you may need to rent a new set of wheels if you got into an accident that severely damaged or totalled your car.
Have you ever rented a car in the past? Then you know that certain aspects of the process can feel confusing or overwhelming. This is undeniably true when it comes to rental car insurance. At Surex, we receive questions about rental car coverage all of the time some common examples being, should I buy insurance from a rental car company? and does my car insurance cover a rental car?.
Instead of leaving policyholders in the dark, we feel this is an excellent opportunity to answer some of your questions!
Continue reading to learn more about car insurance coverage for rental cars in Canada.
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The Three Main Categories Of Auto Insurance
Car insurance is divided into three main categories:
Within these three are further subdivisions, which include the following:
- Bodily injury liability: This covers the expenses of other people should you be at fault. Insurance providers offer two bodily injury liability amounts, covering the expenses either per person or per vehicle.
- Property damage liability: This covers any damage you may do while driving. This usually involves another car, but it can include homes, fences or any other type of structure you might crash into.
- Personal injury liability: Also listed as medical payments, personal injury liability covers the medical payments or lost wages of anyone in the policyholders car at the time of accident, including the driver.
- Uninsured/ underinsured motorist: This option covers any damages that are the result of being injured by an uninsured or underinsured motorist, including hit and runs.
- Comprehensive: This covers you in the event that your car is damaged by something other than a car, such as an accident with an animal like a deer, a fallen branch, fire, theft or vandalism.
- Collision: This covers you in the event that youre in an accident with another car, get a flat from a pothole or drive into a tree or man-made structure.
Does Auto Insurance Or Health Insurance Pay First
The auto insurance companys responsibility is to pay for medical care first if youve been injured in a car accident. This is why in the state of West Virginia, as well as most other U.S. states, all vehicle owners are required to carry basic auto insurance coverage.
According to the West Virginia Offices of the Insurance Commissioner, all motorists must have:
- Bodily Injury Liability Coverage: $25,000 per person and $50,000 per accident
- Property Damage Liability Coverage: $25,000 per accident
- Uninsured Motorist Coverage: $25,000 per person and $50,000 per accident
West Virginia is an at-fault or tort state, which means the individual who caused the crash must use their auto insurance coverage to pay for the injured drivers damages. Once the insurance company decides who was responsible for the collision, the at-fault drivers policy must cover the other drivers medical bills.
Medical bills can only be paid up to the at-fault drivers policy limits. If the at-fault driver only carried the minimum bodily injury coverage of $25,000, and your injuries required $50,000 worth of treatment, you will be left responsible for the remaining expenses. Fortunately, this is where your health or auto insurance coverage can kick in to cover costs.
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Other Liability Coverage Exclusions
A homeowners, renters or condo policy does not cover all situations of bodily injury or property damage for which you or a covered member of your household may be legally responsible. Most policies contain exclusions and exceptions, so its important to understand the details of your specific coverage.
To better understand your personal liability coverage and other important insurance topics, talk to your local independent agent or Travelers Insurance representative today.
How Your Insurance Company Calculates Your Premiums
Premiums are the amount you pay to buy insurance.
When determining how much you’ll need to pay for premiums, insurance companies may consider factors such as:
- the type of residence you live in, such as a single family home, semi-detached, condo, rental property, or seasonal residence
- characteristics of your residence, such as materials your house is made of, age, size, location, replacement value
- value of your property and contents to be insured
- the distance between your home and a fire hydrant or a fire station
- the crime rate in your neighborhood
- your claims history
- the type of policy and coverage you selected
- the amount of your deductible
A deductible is the amount of your claim that you agree to pay before your insurance company pays the rest.
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Why Might You Need Motor Legal Protection
Legal expense cover is there to protect you financially if you need to make a claim against another driver or they make a claim against you. With legal cover in place, your insurance will pay a solicitors fees associated with making your claim often amounting to more than youd think. The idea of taking legal action following an accident might seem like a step too far. But if you sustain injuries from an accident that wasn’t your fault, you might be left with expensive physiotherapy bills or need other medical treatment that your car insurance wont cover. If this happens, youll probably want to recoup those losses. This is known as Uninsured Loss Recovery. You could also be faced with a loss of income, perhaps due to an injury that leaves you unable to work, or be forced to take time off to deal with the incident. Legal cover can allow you to claim for any loss of income, as well as any other expenses that result from the accident, like the excess on your own car insurance policy that you were forced to claim on.
However, its important to note that legal cover only applies to the costs associated with making and defending claims. This type of cover wont pay out compensation.
Legal expenses insurance is a common add-on thats relatively inexpensive, with cover usually costing between £10-30, but it can save you thousands if you need to make a claim following an accident, making it very worthwhile.
What Does Motor Legal Protection Cover
Car insurance legal cover, also known as motor legal protection, will cover your legal fees if you decide to take legal action following a motor accident that wasn’t your fault.
This might be used to make a claim against the other driver, or to give you legal protection if someone else is making a claim against you. It can cover:
Personal injury: to yourself or any passengers
Damage to your car: if you dont have comprehensive cover
Loss of earnings: if you’re unable to work due to an injury
Loss of possessions: if they’re damaged in an accident and aren’t covered elsewhere
Expenses: such as phone calls to insurers, or if youve had to pay an excess on your car insurance policy
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What Will My Insurance Pay If My Car Was Damaged In A Flood
Typically, there are two options if your car is damaged in a flood. Your car will either be repaired or replaced.
If a car is so damaged that it cannot be repaired, or if the repairs cost more than the cars value, the insurance company will declare the vehicle a total loss. When a car is totaled, the owner gets the value of a replacement car. A totally flooded car would likely be deemed a total loss.
If insurance wont total a flooded car, depending on the policy, youre entitled to get your car repaired to the same condition it was before the incident. If the repairs can be done to ensure the car will drive safely, then it wont be a water-damaged car write-off.
What Is Not Covered By Legal Expenses Insurance
Dont mistakenly think it will cover any compensation you may be ordered to pay. LEI is strictly there to cover legal costs, not compensation itself.
A common exclusion is disputes considered of a matrimonial nature, such as divorce.
Nor will you be covered for pre-existing disputes in other words, those disputes which started before cover was taken out.
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Is Motor Legal Protection Worth Having
Of course, it depends on your personal situation, but there are plenty of benefits to having a legal protection policy. On the whole, if you can afford it, its generally worth having.
While you might already be covered for accidents and even have breakdown cover as part of your existing car insurance cover, you could still face the costs of legal fees if you decide to pursue a legal claim against someone else. Without motor legal protection, youd have to pay all these costs yourself.
Motor legal protection will also offer you access to a legal advice helpline, which can help answer any questions you might have as well as offer reassurance and peace of mind when you need it.
Get A Free Legal Evaluation Of Your Home Insurance Concerns
While you may not need every single bell and whistle available in a home insurance policy, not having adequate insurance can come back and bite you. Essentially, you’ll want just enough to protect you and your family, while providing peace of mind so you can enjoy your home. If you have additional questions about home insurance coverage or a pressing legal need, get started today with a free legal evaluation of your concerns.
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Uninsured And Underinsured Motorist Coverage
Uninsured motorist coverage pays costs that result from an uninsured driver hitting you. About 1 in every 8 drivers don’t have car insurance, according to a 2019 study by the Insurance Research Council.
Underinsured motorist coverage pays out when the at-fault driver has insurance, but their limits are too low to cover all of the damage.
Some states require a minimum amount of uninsured or underinsured motorist coverage. Here are four coverage types that may be required:
Uninsured motorist bodily injury coverage, or UMBI, pays for medical expenses caused by an uninsured driver.
Uninsured motorist property damage coverage, or UMPD, pays for repair expenses caused by an uninsured driver.
Underinsured motorist bodily injury coverage, or UIMBI, pays out if the cost of injuries and repairs is more than an at-fault drivers bodily injury liability limits.
Underinsured motorist property damage coverage, or UIMPD, pays for repair costs that surpass the at-fault drivers property damage liability limits.
How it works: A driver rear-ends you at a red light. When you go to exchange insurance information, you discover the driver has none. Your UMPD coverage pays to repair your bumper, while UMBI coverage pays for medical expenses.
Do You Use Health Insurance Or Medpay/pip After An Accident
After an accident, you typically use MedPay or PIP coverage first. In a fault state like West Virginia or Ohio, medical expenses will go through the at-fault drivers auto insurance, then MedPay coverage, then health insurance. The order of payment will look a bit different in no-fault states, like Michigan or New Jersey.
A no-fault state means that car accident victims must seek payment for medical treatment, rehabilitation, surgeries, and other costs through their own auto insurance policy, regardless of who was at fault. In this case, medical expenses will go through the accident victims PIP coverage before reaching the health insurance company.
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What Are The Different Types Of Legal Protection
As well as motor legal expenses cover, which covers events arising from an incident involving an insured vehicle, you can also get legal protection as part of a home insurance policy. As with car insurance, its often sold as an optional extra.
Home insurance legal protection usually covers legal expenses relating to your home, employment or personal injury.
What Doesnt Motor Legal Protection Cover
Firstly, and the clue is in the name here, motor legal protection will only cover your legal expenses. It wont pay out directly for any losses youre claiming for, or any losses that an injured party successfully claims from you. All it does mean is that you wont be left out of pocket for legal expenses you pay for legal claims you make or that are made against you.
This leads nicely on to the next crucial point: motor legal protection doesnt always pay out. Read the small print of most policies and youll find that insurers often wont cover your legal costs if:
Bear in mind too that you often dont get full choice of which lawyer you use. You may have to work with one appointed by your insurer, to start with at least, or find one thats willing to take the insurers hourly rate.
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How To Make A Claim
If you think you’ll need legal advice following an accident, call your insurance company as soon as you can. Insurers often put a time limit on making claims, so it’s best to claim sooner rather than later.Call us on 0800 202 8464 if you’ve had an accident. You’ll need to have your registration number and policy details to hand.We’ll get in touch with our panel solicitors on your behalf, or you can appoint your own solicitor, as long as they’re happy with our standard scale of charges.The insurance pays for the legal expenses to recover uninsured losses following an accident that causes damage to your vehicle or the property in it, and death or injury to people in the vehicle.Already an LV= car insurance customer? To add motor legal insurance to your policy, call us on 0800 085 5663.
Exclusions To Watch Out For
Each insurer has its own list of what is and isn’t included.
Common exclusions include:
- Compensation awarded to a person or group bringing a claim against you
- Fines imposed by a court for criminal or motoring offences
- Expenses incurred prior to a legal team accepting the case
- Costs resulting from motoring claims against you if you were drunk or under the influence of drugs, or if you were dishonest or violent
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Can I Cancel My Pet Insurance
You can cancel pet insurance at any time. Insurance companies usually ask that you call them to cancel your policy. You can do this at any time, but bear in mind that if you cancel before your policy is due for renewal you may be liable to pay the premiums for the remainder of your current period of insurance.