Homeowners insurance covers legal fees – true of false?

Homeowner insurance policies have become almost a willing mandatory for those of us who are lucky enough to be able to own our home. Furthermore, if you have just bought your first home, wouldn’t you be eager to invest a bit more in order to feel safe about it? Obviously, there are different types of homeowner’s insurance policies that you get to choose from. Then, how do you make the decision? Well, it is important to know your weaknesses and the weaknesses of the region that you live in. However, there are some aspects of the homeowner’s insurance policies that you may or may not know that you can use. Sometimes, they come with the insurance policy, while at other times you need to pay more to get them. One of those is the dilemma whether homeowners insurance covers legal fees. Let’s take a look at this interesting situation.

Image of a cottage house from the inside
Homeowner’s insurance should cover different kinds of issues you may experience. It is up to you to choose which ones you need protection from

Is it a standard that homeowners insurance covers legal fees?

Legal expenses is a clause within your homeowner’s insurance that may be included in your policy by default or by your wishing. It is up to the insurance company to come up with the insurance offer. If they decide that it is profitable for them to offer legal expenses coverage by default, you will need to do nothing about it. However, if it is not in the offer originally and you wish to have it in your policy, you may ask the moving company to include it. Then, expect that the cost of your insurance policy is going to rise. Therefore, it is not easy to pinpoint precisely in percentage how much of a standard this feature is in homeowners insurance policies. The good news is that insurance companies do offer it. It is up to you to check the conditions under which you can get it.

What do legal expenses clause do for you?

Legal fees clause can help you with providing a lawyer to represent you in the court of law for example.

Image of a contract
Make sure that your insurance covers the legal fees of your choice

Now, it is important to once again point out that you need to bear in mind the terms and conditions of your insurance policy. While your homeowner’s insurance covers legal fees, not necessarily will you receive coverage in every situation. For example, should you get into a car accident, your homeowner’s insurance will not be the one to provide you with a lawyer. In this case, your car insurance should be the company that should send an attorney to you. He will then provide you with counseling and representation if needed.

When can you use it?

Legal representation is very expensive. After all, this is the reason why insurance companies offer it. However, one of the most important questions that you need to answer when choosing the insurance company is when can you use the legal representation.

It is very important to check the terms and conditions of your policy. Learn essential insurance terms. Sometimes, the ability to get support from a lawyer provided by your insurer is not always possible. What is the reason for it? Well, quite often an insurance policy requires a reasonable prospect of success in order to provide you with help. This means that if you are looking at a very low probability of winning a case, you will probably not be able to receive representation from your a lawyer working for your insurance company.

What homeowners insurance covers legal fees for?

There are four major situations in which you could use representation provided by your insurance company. When choosing, choose the right type of homeowner’s insurance. They should include the following so that your homeowners insurance covers legal fees:

  • Employment disputes
  • Contract disputes
  • Personal injury
  • Property protection

Employment disputes

One of the situations in which you can expect your insurer to jump in and help you out with is with employment disputes. In case that you have been let go unfairly, get in touch with your insurance company. If that they share your views, they will jump in and provide you with legal assistance. Still, there are different kinds of limitations to this representation. Therefore, be open about these issues with your insurance company. After all, you would not want to find yourself in a bad situation for you. In case your insurance company refuses to honor its side of the deal, you can always talk to an insurance claims adjuster. He will help you get your insurance claim accepted.

Contract disputes in which homeowners insurance covers legal fees

Another situation in which you can expect your insurance company to jump in is when you have a contract dispute. For example, you have signed a contract in which you are supposed to deliver goods or services in return for payment. However, while you have kept your side of the deal, your business partner refuses to pay his share. This is when you can file one of the homeowners insurance claims. The insurance company should cover your costs and tackle the payment instead of you.

Homeowners insurance covers legal fees with contract disputes
If you have issues with a contract dispute, your homeowner’s insurance may help you. But homeowners insurance covers legal fees – yes or no – is your biggest question here!

Property protection

Probably one of the most important conditions for a homeowner. We always want our homes safe. If they are not, we can feel bad about living there. Now that we are sure that our homeowner insurance covers legal fees for property protection, we can get back to enjoying our stay. Still, when can you use your property protection clause? When you have legal issues that are related to your insured home for example. Then, you can get in touch with the insurance company. They should then provide you with assistance. No matter whether you are having issues with a neighbor or with a utility company, your insurance company should make sure to be there for you.