You may not realise it but most basic homeowners insurance may already include legal expenses insurance.  Part of the legal expenses cover normally includes funding legal claims which have occurred as a result of a breach of contract for goods or services.

This section of cover is very wide and could include claims relating to a faulty dishwasher or faulty car or even claims which have arisen as a result of a plumber or electrician who has carried out workmanship to a poor standard.

Your basic homeowners insurance policy will detail exactly what is covered.  Some basic homeowners insurance policies will have certain exclusions.  For example most policies will require the contract for the goods or services to be made during the period of insurance.  Therefore if you have had work done or have purchased something before you took out your basic homeowners insurance policy and then a problem develops, you may not be covered!  However if you have entered into the contract after your homeowners insurance started, there should be potential legal expenses cover.  It is also quite normal for a legal expenses policy to specify that there must be a minimum amount in dispute; the amount can differ depending on the basic homeowners insurance policy wording.

If you have a contract problem, it is best to call the legal advice line for advice as some basic homeowners insurance policies offer access to a legal helpline as standard.  The telephone number can be found in your policy under the legal expenses section.

After taking advice, if you believe you have a claim you should request a claims form.

What should I do once I have received the claims form?

Once you receive the claims form you should fill it in as fully as possible and return it without delay.  You will need to obtain a copy of your insurance schedule to send to your legal expenses provider so that they can check that you have legal expenses cover attached to your basic homeowners insurance policy.  If you do not have a copy of your insurance schedule you can request a copy from your insurance company.  You should also send a copy of the contract and any other information you may have, for example, copies of photographs, witness statements and so on.

Your claim will then be assessed by a legal adviser and as long as you have potential legal expenses cover and the lawyer is of the opinion that you have a reasonable chance of succeeding, your claim should be accepted.  The legal adviser will check to ensure that there are no exclusions within your policy which apply to your potential legal claim.  It will then be passed to litigating solicitors who are used to settling claims, to take over your case and act on your behalf to claim compensation from the party who is in breach of contract.

If for any reason your claim is rejected, it is normal that the legal expenses insurer will write to you explaining why your claim has been rejected.

If your claim is accepted the solicitor appointed will be able to advise you about the amount of compensation you are able to claim.