Broker Training – 2nd Property (Inc Let)

Legal Expenses

2nd Property (Inc Let) Policy Wording

2nd Property (Inc Let) IPID

2nd Property (Inc Let) Sales Process

The 2nd Property Including Let Legal Expenses product may be offered as an optional additional cover to a policyholder’s main 2nd Property Building & Contents insurance policy and offers the policyholder cover for a range of common potential legal issues that can arise. This product is available where the 2nd Property is let for short periods of time however, no tenancy/let may be for a period exceeding 28 days. The product can also cover static caravans or park homes.

It is important to run though the following key product features, covers, special restrictions and some important areas that would not be covered by the policy as a minimum set of declarations prior to the sale of the policy.

Please ensure that the policyholder is made aware of the following policy conditions and exclusions prior to purchase.

2nd Property (Inc Let) Summary of Key Covers

Free Legal Advice Telephone Helpline for legal issues falling under the jurisdiction of the courts of England, Scotland, Wales and Northern Ireland.

Provides cover for legal assistance or advice for contract disputes including buying, hiring or selling of goods or services.

Note: The agreement has to be entered into by the policyholder and has been made during the period of cover, and the dispute is more than £100.

Note: The contract related to goods or services must relate to the 2nd property.

Provides cover for legal fees to pursue a civil claim relating to material property owned by policyholder including nuisance and trespass

Note: The value of loss under this section of cover must be > £100
Note: An excess of £250 will apply for any nuisance and trespass related claims.

Provides cover for proceedings in respect of a Full and/or Aspect personal tax inquiry by the HM Revenue and Customs (HMRC) and also includes cover for representing the policyholder in respect of a HMRC Value Added Tax appeal.

Defence of the policyholder’s legal rights if an incident from letting their property results in them being prosecuted in a criminal court.

Provides cover for their actual loss of wages/salary whilst attending court at the Authorised Representative’s request or whilst defending a criminal prosecution that is accepted under the Legal Defence section of the policy.

Note: Maximum cover up to £100/day and a maximum of £1,000 per claim


2nd Property (Inc Let) Summary of Key Exclusions

Excludes the following;

(a) contracts related to profession, business or employment,

(b) contracts involving a motor vehicle

(c) disputes relating to advice or settlement of an insurance policy or financial product

(d) any contract related to building or construction work including extension or conversion work at the policyholder’s main residence.

Note: The contract related to goods or services must relate to the 2nd property.

Excludes the following;

(a) any building or land other than the policyholder’s main residence

(b) any work carried out by any local or public authority unless the claim is for accidental damage

(c) any claim relating to a motor vehicle

(d) claims related to mining subsidence.

A policy excess of £250 is payable by the policyholder for any nuisance or trespass related claims under this section.

HMRC inquiries into earnings related to self-employment are not covered as are any claims where the policyholder has made deliberate misstatements and/or omissions to the HMRC.

Where the policyholder pleads or are advised to, or its recommended that they should plead guilty by the Appointed Representative or duty solicitor.

Excludes the following;

(a) where the policyholder is self-employed

(b) for losses other than contract salary or wages

(c) any claim for loss of overtime or bonus

(d) any losses that may be recovered from another source including the court.

2nd Property (Inc Let) Policy Conditions and General Exclusions

  • The property is not the policyholders only or principal home.
  • The 2nd Property is not let or rented out for a period exceeding 28 days.
  • The free 24/7 Legal Advice Helpline is for general advice only and policyholders should be informed that they must not rely on the free legal advice instead of reporting a claim.
  • All claims must be reported as soon as possible and in any event within 180 days of the event giving rise to the claim.
  • For all legal claims there must be a reasonable prospect of success, i.e. a greater than 51% chance, that a claim will succeed and the claimant will be able and likely to obtain the compensation or none financial result that they are seeking.
  • Any legal or associated costs that the policyholder has incurred prior to reporting the claim are not covered.
  • All claims for any matter that was not caused by a specific or sudden incident/event are excluded.
  • Any claims that arise from a criminal act or omission are excluded.
  • Any claim for incidents that occurred outside the United Kingdom (including N.I.) the Channel Islands or the Isle of Man are not covered as are any claims that occurred outside the period of cover detailed on the policyholder’s policy schedule.

2nd Property (Inc Let) Presentation Guide

2nd Property (Inc Let) Competency Test

FAQ’s

Lexelle’s Second Property Inc Let Legal Expenses Insurance is designed to provide cover to support the policy holder with some of the more common legal issues that may arise regarding their second property. This includes problems such as contract disputes, property protection, tax protection, legal defence and attendance expenses.

The 24/7 Legal Helpline service is restricted to the provision of generic legal advice over the telephone and no formal correspondence will be entered into by the helpline. The helpline is not to be used as a substitute for making a claim on the legal expenses policy.

There are no set limits for use of the helpline, however, this service can be withdrawn if a policyholder’s use of the helpline is deemed to have been excessive and therefore unreasonable.

Yes – the policy limit for legal fees and assistance in any one annual cover period is £50,000. Some policy sections have a specific limit, in particular the Attendance Expenses payment is up to a maximum of £1,000 in total.

In the event of a claim, the policy covers for Lexelle to appoint a solicitor, counsel, claims handler, mediator or other qualified professional to represent the policyholder. Should the policyholder wish to select their own family solicitor this will require prior written approval by Lexelle and should not be appointed without first seeking approval.

No – any legal costs must first be authorised by calling the Lexelle Claims Helpline to register a claim. Also, it is important to note that the policyholder could prejudice a valid claim on the policy by having sought legal assistance prior to registering the claim.

Yes – but the incident or specific event that leads to a claim by the policyholder must occur after the policy has been purchased.

Motor Legal Expenses cover is normally restricted to support the policyholder in pursuing a claim for recovery of uninsured losses arising from a non-fault road traffic accident. This policy covers for a range of common second property legal issues that the policyholder may wish to cover but it does not provide legal assistance for matters relating to a motor vehicle so their motor legal cover would still be relevant.

No – The Lexelle Second Property including let policy does not cover the purchase of a primary home in which the policy holder intends to live in.

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