If you have Legal Expenses Insurance and the insurer agrees to cover your claim against a developer, then the insurer will pay your legal costs and expenses, and provide cover for potential costs orders made against you, up to the level of indemnity specified in your policy. This can put you in an extremely strong position for seeking redress from your developer in relation to outstanding remedial works and other issues.
Unfortunately, getting your insurer to agree to cover the costs of pursuing your claim can be challenging.
If you have made a claim on your Legal Expenses Insurance policy but have had cover declined by the insurer's panel solicitor e.g. on the basis that you are required to refer your dispute to the warranty provider first or due to a purported lack of merits or lack of evidence, do not give up. You will usually be entitled to challenge that decision. In most cases this will involve obtaining a second opinion from another solicitor or barrister at your own cost. If this second opinion leads to the insurer covering your claim, they will normally also reimburse you for the cost of your second opinion.
We offer a bespoke service advising clients on challenging insurers' refusal to provide Legal Expenses Insurance cover, including drafting second opinions and advising on the process for seeking to overturn the original declinature including referring complaints to the Financial Ombudsman Service where appropriate.
Please get in touch to discuss your sitation and find out how we can help you.