What does the legal policy cover?
Landlord’s legal protection is an insurance policy to protect you as the landlord of your property, in case your tenants are in breach of their contract and you need to take them to court. The insurance policy will cover the legal costs incurred.
Detailed response: Landlord legal protection can be specified as part of a larger landlord insurance policy encompassing both buildings and contents insurance.
Depending on the exact terms of your legal policy, it may cover your legal costs in relation to such events as property damage, nuisance or trespass, repossession, the recovery of rent arrears, prosecution and even the costs of accommodation if you are unable to regain possession of your property and wish to live there.
There is a range of legal costs that can arise in relation to issues with your rental property. These costs include legal action and court proceedings, which a landlord legal protection policy is likely to cover up to a certain amount.
One common scenario for which a landlord legal policy will likely be useful is that of your tenant missing several months of rent payments, for which you may serve them an initial warning and a notice seeking possession, before commencing court proceedings to get a possession order.
However, a landlord’s legal protection policy may also cover your defence costs if you are accused of breaching your legal obligations to your tenants, or even if you are subject to a tax enquiry by HMRC. Your policy may also provide you with various other forms of legal support, such as a dedicated helpline and templates for legal notices and tenant letters.
As ever, it is vital to read the terms of your landlord legal protection carefully, to ensure that you are comfortable with them and they cover all of your likely requirements.
No landlord legal protection policy is exactly the same as the next, so it is important to make sure you only take out a policy that you are satisfied with, in terms of the help that it can provide with your legal costs in any of a wide range of situations.