Legal expenses insurance provides legal peace of mind for the whole family
The tighter the financial situation, the more disputes arise – with landlords, neighbors, employers, employees, builders, auto service centers, tire shops, or stores. ERGO statistics show that Estonian people are increasingly taking out legal expenses insurance, which provides themselves and their families with legal peace of mind to avoid such disputes or to fight them through to the end in court painlessly.
In recent years, the number of people and investors renting out their real estate has grown. As data from Rendin, ERGO insurance's partner startup, shows, one in every ten rental agreements leads to a dispute. The main reasons are typically late rent payments or failure to treat the property with proper care.
"We see that cases are becoming increasingly common where a tenant wants to move out early, thereby breaking the rental agreement," commented Maiko Kalvet, head of ERGO's legal expenses insurance portfolio. "Or the tenant gets into financial difficulties and starts delaying monthly payments. We recently dealt with a typical case where a property owner got fed up with the debt and wanted to terminate the rental agreement and demand the outstanding amount. The tenant responded that he wouldn't move and that the owner could go to court if he wanted."
If damage to property or interior in the apartment is added to this situation, the process can drag on and become unpleasant. If the owner takes the court route and finally regains possession of the apartment, its condition may be so poor that a new lawsuit must be filed immediately to recover damages. "For completely understandable reasons, people are not fully familiar with the law and are therefore not aware of all the options for standing up for their rights. This is exactly where legal expenses insurance comes in, which provides you with comprehensive assistance throughout the entire dispute process until the court judgment is finalized," said Kalvet.
A separate issue that keeps coming up is disputes between neighbors. Whether a neighbor is building their sauna or shed larger than permitted or in the wrong location. Or a neighbor illegally closes off a road that belongs to them, through which another neighbor accesses their home. "Even after a court decision, a neighbor can refuse to cooperate. However, this means involving a court bailiff and subsequent court hearings where compromises are sought, sometimes involving building a new road," explained the head of the legal expenses insurance portfolio. "One thing is clear – this process is not pleasant for an ordinary person, and to prevent it, we take on all communication and paperwork ourselves. Essentially, our client doesn't have to deal with the person in conflict and can go about their own business."
Rare are also cases where legal expenses insurance lawyers have to deal with, for example, repair companies that take advance payment but don't do the promised work. Often in such cases, the foreman disappears without a trace and doesn't answer the phone. It happens that later they deny receiving the advance payment, after which the money must be recovered together with interest and procedural costs through the courts.
Unfortunately, disputes between employees and employers are on an increasingly growing trend. There are cases where employment contract terms are unilaterally changed or salaries go unpaid for months. "At the beginning of the coronavirus era, for example, situations arose where malicious employers tried to avoid paying salaries and accused the employee of, for instance, damaging goods," said Kalvet.
Employment disputes are often the most serious because the amounts in dispute are significant. "Several months' salary is a large sum for anyone. Not to mention a serious accusation of damaging goods, where amounts can reach tens of thousands of euros," said ERGO's head of legal expenses insurance. "Dealing with such disputes alone is a serious challenge, which is why it makes sense to involve a specialist – a lawyer who knows the law and can fully stand up for you throughout the entire dispute. Legal expenses insurance provides you with this safe and painless path."
Learn more about ERGO legal expenses insurance and sign a contract starting from 9 euros per month.
