Legal Cover in Home Insurance

g0mgx

Hi All

New here so excuse if this is in the wrong place, just a warning really.

Took out insurance via Clarke Roxburgh (as recommended by London and Country) for a new house purchase.

Seems they only offer one legal expenses policy with DAS - we have had a conservatory built and are in dispute with the building company. It now transpires that the legal cover for contract disputes only covers up to a maximum contract value (including VAT) of £5000.

What kind of contract for building extensions can you enter into for under 5K? Maybe a large shed.

Not happy and now on my own with quite a major problem.

Be warned.

Astaroth

The contracts cover is normally for all contracts and not just those in relation to the property. I have to say that I have only ever previously heard of limits on the solicitors costs incurred in pursuing the claim (typically £50,000 or £100,000) and not a limit on the amount claimed.

Have you checked your policy book and schedule to confirm this limit was listed?

g0mgx

Indeed - we are "in the big print" covered for £50K. However, the small print states that "what is not covered under title "contract disputes" <<snip>> construction work on land, or designing, converting or extending any building where the contract value exceeds £5000 (including VAT)"

Good news! - not...

regularsaver1

have you tried trading standards in relation to the building firm? (just got the idea from watching builders from hell the other evening, and my parents bad experience with builders who did their conservatory)

g0mgx

I have spoken to trading standards who were kind enough to send me some example "how to complain" letters - hmm. They (and other sources of advice) have suggested that I need to employ a surveyor from the RSCI (or something) who can identify and report on the problem and then act as an expert witness in court should the fault be with the workmanship. The survey alone is 7-800 £s hence the legal cover requirement from insurance...

Astaroth

Unfortunately if it is listed as a limit then it just seems that it is a poor policy but not something you can do anything about.... the problem with it exceeding £5000 is that it doesnt fit in the small track (small claims court) of the legal system but in fast track instead which means that the winning side can claim legal costs from the other. This obviously is too large a risk for DAS to want to underwrite on this particular policy.