A legal expense policy will typically cover which of the following?

A legal expense policy is designed to cover the costs associated with legal issues that a policyholder may face. The selection of consumer disputes as the correct answer aligns with the primary purpose of these policies, which is to provide coverage for legal costs incurred when an individual is involved in disputes related to consumer transactions. This can include matters such as contractual disagreements, disputes over goods and services, or issues with a product or service purchased.

In contrast, while building alterations, divorce disputes, and libel or slander may involve significant legal considerations, they are not typically covered under a standard legal expense policy. Building alterations generally relate to property insurance rather than legal expenses. Divorce disputes often fall under personal legal matters that may not be specifically covered by legal expense policies. Libel or slander, being a type of personal injury claim, usually requires different kinds of liability coverage or specialized insurance products. Therefore, consumer disputes represent the most relevant and typical coverage you would expect from a legal expense policy.