Legal expenses insurance for property disputes

What is legal expenses insurance for property disputes?

A legal expenses insurance is an insurance policy that covers part of your legal expenses in the event of a property dispute.

How can legal expenses insurance be used in a property dispute?

Legal expenses insurance is usually part of ordinary property insurance policies. Home contents insurance, property insurance and cabin insurance normally include legal expenses cover, which means that the insurance company covers part of your legal expenses.

Which property disputes does the legal expenses insurance apply to?

It is common for legal expenses cover to apply to property disputes relating to the property covered by the insurance. Legal expenses insurance normally applies to property disputes concerning faults and defects in property, neighbour conflicts, craftsman disputes, rent disputes, co-ownership disputes or disputes regarding plot boundary.

Property disputes about defects in the purchase and sale of property are regulated by Act on the disposal of real property, also called the Disposal Act or Disposal Act.

Property disputes about defects and deficiencies in home remodelling are often governed by Act on craftsman services, also called Craftsman Services Act.

Property disputes about defects and deficiencies in the construction of new homes are governed by Act on contracts with consumers for the construction of new housing, also called Housing Listing Act.

See the list of typical faults and defects when buying a home here.

What lawyer's fees are covered by legal expenses insurance for property disputes?

Legal expenses cover is regulated in the insurance terms and conditions and may vary slightly from company to company. Normally, legal expenses insurance covers your legal fees in the event of a dispute up to a maximum of NOK 100,000, but not more than the financial interest involved in the property dispute.

You usually have to pay a deductible, which in most insurance policies amounts to the first NOK 4,000. In addition, you must pay a deductible corresponding to 20 per cent of what is paid out under the insurance.

This means that, in most cases, you as a policyholder will have to pay a deductible of NOK 29,000 if you fully utilise the legal expenses insurance of NOK 100,000.

What is required for legal expenses insurance to apply in a property dispute?

The basic condition is that a property dispute has arisen between you and one or more counterparties. Some insurance terms and conditions require that you must have taken legal action for the legal expenses insurance to apply.

How does the insurance company assess what constitutes a property dispute?

You must be able to document to your insurance company that there is a dispute between two or more parties. If your neighbour has built a garage on your property, the insurance company will consider this to be a property dispute from the point at which your neighbour denies in writing that he does not intend to demolish the garage.

Can you use legal expenses insurance if you have taken out home buyer's insurance?

As a home buyer, it is not unusual to take out home buyer insurance. When you take out home buyer insurance, you pay a sum that provides you with legal assistance if you discover defects or deficiencies in the home you have purchased.

If you have legal expenses cover in one of your home insurance policies, you will then be doubly insured because this insurance also covers your expenses for a lawyer in a property dispute.

The difference is that home buyer insurance does not normally have a cost ceiling like legal expenses insurance does.

If you have not taken out home buyer's insurance or home seller's insurance, your legal expenses insurance can therefore be used in the event of defects and deficiencies in your home - unless otherwise stated in the insurance terms and conditions.

Why should I choose Advokatfirmaet Halvorsen & Co?

For almost 30 years, we have assisted many clients in cases concerning defects and deficiencies in property. Our lawyers are experts in property disputes and have extensive experience.

Advokatfirmaet Halvorsen & Co helps clients with faults and defects in housing in the following locations, among others:

Ringerike, Hønefoss, Ski, Follo, Ås, Kolbotn, Vestby, Nordby, Moss, Enebakk, Indre Østfold, Oslo, Asker, Bærum, Drammen, Hurum, Drøbak and Nesodden.

We always offer a free consultation on property disputes. Get in touch with us today.