Do I need legal expense cover on my home insurance?
Robert W asked:
I am trying to reduce the cost of my home insurance and the biggest difference could come from not taking the legal cover. I am not sure whether this is a good idea or not, anyone had experience of this or know the finer details?
Marin Safar
I am trying to reduce the cost of my home insurance and the biggest difference could come from not taking the legal cover. I am not sure whether this is a good idea or not, anyone had experience of this or know the finer details?
Marin Safar
Would not be a good idea to drop the liability insurance. One of the maxims we, in the insurance business, abide by is that “You don’t risk a lot to save a little”. In other words you don’t leave yourself exposed to a potentially catastrophic legal judgment in order to save a few hundred a year.
Better to save money by increasing the property deductible. What would be easier to deal with in the event of a loss a $5,000. deductible or an uncovered legal judgment against you for $200,000?
its best to have it, just in case
What the HECK do you mean by “legal coverage”? The STANDARD homeowners policies have six parts, one of which is “personal liability”. You HAVE to have all six parts. You can’t “opt out” of one of them.
Not having any idea what “legal coverage” is, I can’t ask about that.
But the biggest, best way to cut back on your homeowners insurance costs, is to 1. increase the deductible – to at LEAST $1,000, or $2500 if you can afford it or 2. if the house is more than 25 years old, be sure that the wiring, plumbing heating and roof are fully updated – and that your agent knows it’s fully updated and 3. carry your car insurance with the same company – it can give you up to a 25% discount on your homeowners.
You need to sit down and talk with your agent about how to cut the premiums back, while still giving you adequate coverage.