Legal expense insurance is an essential protection for co-owners offering partial or full reimbursement of lawyers' or notaries' professional fees with the objective of preventing or resolving a dispute; although this insurance has conditions, deductibles and limits, it can be a major asset in the event of a conflict. Insurance companies offering this type of coverage (guarantee) may recommend legal professionals but can't impose a choice. It is important for co-owners to carefully review their policy to understand the extent of the coverage and any potential exclusions.
Subscription of legal expense insurance
In co-ownerships, litigations are more frequent because of the complexity of the co-owners' rights and obligations; this results in disputes that create conflictual situations by the irregular use of the common portions, the inadequate allocation of common expenses, the contestation of decisions of the meeting of co-owners or that of those related to the board of directors as well as the prohibition of activities contravening the by-laws of the immovable. Legal expense insurance allows to have access to accurate legal information as well as an assistance to find an amicable solution (settlement) or, if necessary, to cover legal costs. Legal expense insurance generally covers the professional fees of an attorney, a bailiff and an expert; this insurance is usually included in the home insurance policy but it's recommended to verify this information with the insurer.
Cost of legal expense insurance
Cost of legal expense insurance varies between 40 and 100 dollars annually; that being said, it should include the following elements:
No legal expense insurance for the syndicates
In the current market, there is no legal protection insurance product regarding legal expense specifically for the syndicates of co-owners.
WHAT YOU SHOULD KNOW! For more information on legal expense insurance and how to get it, it's possible to visit the website of the the Quebec Bar.
WHAT TO KEEP IN MIND! Legal expense insurance notably covers lawyers' professional fees to resolve co-ownership disputes.
WARNING! There is a big difference between legal expense insurance and legal assistance; the latter only gives access to legal information by telephone whereas legal expense insurance covers the services of a lawyer who may also institue legal recourse (proceedings) and do representations in court if necessary.
