Housing disrepair ATE insurance

What is housing disrepair ate insurance?

Insurance taken out after the dispute arises

Unlike before the event (BTE) legal expenses cover, ATE insurance is purchased once a claim already exists — typically when the letter of claim is sent or proceedings are issued. The policy responds to the specific claim rather than covering future disputes.

Cover for adverse costs

The core of an ATE policy is cover for the opponent's legal costs if the claim is lost or discontinued. In disrepair litigation against well-resourced landlords, this is the risk that would otherwise make claims uneconomic for claimants.

Cover for own disbursements

Most disrepair ATE policies also cover the claimant's own disbursements — expert surveyor fees, court fees, counsel's fees and medical evidence — if the claim fails. This protects the firm's cash flow where disbursements are not otherwise funded.

A deferred, contingent premium

The premium is usually deferred until the case concludes and is only payable if the claim succeeds. It is typically deducted from the client's damages, subject to the deductions cap and the client's informed consent.

How it works in practice

Staged premiums

Many disrepair ATE schemes use staged premiums: a lower premium if the case settles early, rising as the case progresses toward trial. This aligns the cost of cover with the risk the insurer actually carries.

Delegated schemes vs case-by-case

Volume disrepair practices usually operate under a delegated authority scheme, where the firm can incept policies within agreed criteria without referring each case. Higher-value or unusual claims are referred to the insurer individually.

Interaction with the CFA

ATE insurance sits alongside the conditional fee agreement. The CFA covers the firm's own fees on a no win, no fee basis; the ATE policy covers the opponent's costs and disbursements. Clients should have both explained clearly at sign-up.

Disclosure and credibility

The existence of ATE cover is typically disclosed to the defendant. A reputable insurer and a properly structured policy strengthen the claimant's position; a weak or poorly underwritten policy can be challenged and undermine the claim.

Who needs it?

Law firms running disrepair claims

Any firm offering no win, no fee disrepair claims needs an ATE solution in place before taking cases on. Running litigated disrepair work without ATE exposes clients to adverse costs risk the firm cannot responsibly ignore.

Claims management companies

CMCs that generate and refer disrepair claims need to understand the ATE arrangements of the firms they refer to — it affects client outcomes, complaints risk and the sustainability of the referral relationship.

Housing disrepair departments

An in-house disrepair department within a wider practice needs its own ATE scheme or access to the firm's scheme, with criteria that match the department's case profile and settlement timescales.

Claimants

The policy ultimately protects the claimant. Anyone bringing a disrepair claim on a no win, no fee basis should expect ATE cover to be explained to them, including what it costs and when the premium is payable.

What to look for in a provider

SET UP A does not provide these services itself. We introduce you to specialist providers — the points below are what to assess them on.

• FCA-authorised insurer or coverholder with a UK disrepair track record
• Staged premium structure that reflects realistic settlement timescales
• Delegated authority criteria that match your case profile
• Clear policy wording on disbursements, adverse costs and exclusions
• Premium level compatible with the deductions cap and client care
• Financial strength and claims-paying record of the underwriter
• Support with referrals for cases outside the delegated scheme
• Complaints and cancellation handling that stands up to scrutiny

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