What is legal expenses insurance included in home insurance?
Legal expenses insurance as part of home insurance covers legal expenses in a disputed civil case, criminal case or non-contentious civil case concerning your private life. A typical example of a covered case is a dispute related to the sale or purchase of a home.
The validity of legal expenses insurance depends on whether the insurance for your home contents is valid. If you do not have insurance for your home contents, or the insurance has expired, legal expenses insurance is not valid. It's therefore important that you ensure that your insurance cover is up to date.
When is legal expenses insurance necessary?
You may need legal aid if you find yourself in a situation in which you need to look after your interests in court. Legal expenses insurance provides cover against legal expenses and litigation costs. That's why it's advisable to ensure that your household always has valid home insurance that includes legal expenses insurance.
Whether your home is insured with standard or comprehensive home insurance, Pohjola's Home Insurance always includes legal expenses insurance and liability insurance unless you have specifically opted out of the cover.
What does legal expenses insurance cover?
Legal expenses insurance covers legal expenses and litigation costs in disputed civil cases, criminal cases and non-contentious civil cases concerning your private life.
You can claim compensation under legal expenses insurance in the following disputed civil cases or criminal cases, for example:
- disputes regarding the sale or purchase of a home
- disputes related to the renovation of your house or summer home
- issues related to real estate ownership, such as boundary disputes and accretion land redemption disputes
- you are the injured party in a criminal case (such as an assault, issues relating to integrity, defamation, thefts).
The deductible for legal expenses insurance is 15% of legal costs incurred, but a minimum of EUR 200. The maximum compensation for legal expenses, or the sum insured of legal expenses insurance, is 14,000 euros for each claim. Before the court proceedings and in matters settled out of court, up to 50% of the sum insured of legal expenses insurance can be used.
What is not covered by legal expenses insurance?
Legal expenses insurance does not cover expenses incurred in cases which, for example:
- concern a divorce or property disputes or other claims connected with a divorce, separation, or the termination of a partnership or marriage-like cohabitation.
- are related to the custody or habitation of a child, or maintenance liability or parental access
- involve you or your family member being charged by the public prosecutor
- are related to business or gainful employment, work or an official post, or other main or ancillary wage-earning activity of the insured
- are related to real estate, a building, or a flat which is other than your permanent home or holiday home. This restriction does not apply to buy-to-let homes if you and your family members own only one buy-to-let home.
When is legal expenses insurance valid?
Legal expenses insurance covers the policyholder and persons living permanently in the same household with them and is valid in the Nordic countries. If you travel outside the Nordic countries, take out Pohjola Travel Insurance that includes travel liability and legal expenses insurance.
Legal expenses insurance also has a so-called two-year rule. In practice, this means that an insurance event under legal expenses insurance is a dispute or charges that have been raised during the validity of the policy. If the legal expenses insurance has been valid for less than two (2) years at the time, the matters on which the dispute is based, or the charges that were raised must also have arisen during the validity of the insurance.
Example: The two-year rule is important in home sales, no matter what your insurance company is
You purchased a detached house or owner apartment on 5 June 2021. You only took out home insurance a week later on 12 June 2021, at which point your legal expenses insurance also became valid.
In the spring of 2022, you detected mould damage in the apartment or building and demanded a price reduction, which the seller refuses to grant. Compensation for the event cannot be paid from your legal expenses insurance, as the insurance had been valid for less than two years and the grounds for the dispute – in other words, the home sale – took place before the insurance became valid. It is therefore important to ensure that your legal expenses insurance remains valid without interruption if you make changes to your home insurance or change insurance companies.
Price of legal expenses insurance included in home insurance
Legal expenses insurance is automatically included in Pohjola Home Insurance. The price of home insurance depends on your personal information, the home to be insured, the covers selected and the amount of deductible. In our online store, you can easily compare how a different deductible, coverage and maximum sum insured affect the price of the insurance.
Calculate the price and buy Pohjola Home insurance
Home insurance's liability insurance
Home insurance always includes liability insurance and legal expenses insurance unless otherwise agreed when buying the policy. Liability insurance covers bodily injuries and property damage caused to third parties by you or a person living permanently in the same household with you.