June 27, 2023


Title insurance is an essential component of any real estate transaction. It serves to protect buyers against any unforeseen claims, liens or disputes that may arise after the sale has been completed. However, even with the best title insurance policy, there may come a time when a claim needs to be filed.

Understanding the title insurance claim process is crucial in navigating what can be a confusing and complex area of real estate law. In this article, we will explore the different types of claims, how to file a claim, and what to expect during the claims process.

Overview of Title Insurance Claim

What Is Title Insurance?

The concept of title insurance is essential to the real estate industry, as it provides protection to both property owners and lenders against any unknown defects or issues related to the title of the property. An owner’s title insurance policy is designed to insure against anyone else claiming ownership of the property, encumbrances, or any liens attached to the property that is not disclosed by the title search.

Title insurance is a one-time premium, paid during the purchase of the property, and it lasts for as long as the policyholder has an interest in the property. The policy covers any claims, damages, or losses related to the title of the property that occurred before the policy’s effective date. It is important to note that the policy does not cover any incidents arising after the effective date.

It is vital to understand the importance of title insurance when purchasing or refinancing a property, as it provides peace of mind to the property owner and reduces the risks associated with property ownership.

Why is Title Insurance Important?

The purchase of a home is likely the largest financial investment an individual will make in their lifetime, making it critical to ensure that the investment is protected. Title insurance is a means to protect the homeowner’s investment by ensuring that the title is clear of any defects or claims. Without title insurance, a homeowner may face unexpected costs that could potentially lead to the loss of their investment.

Title issues can range from boundary disputes to unpaid taxes, among other issues. Title insurance provides peace of mind, ensuring that a clear title is in place for the homebuyer. It is also important to note that obtaining title insurance is often a requirement of mortgage lenders, further emphasizing the importance of the protection it provides.

What is a Title Insurance Claim?

Understanding the title insurance claim process is essential for anyone who is planning to buy, sell or refinance a property. A title insurance claim can be filed when the title to a property is found to be defective or there are disputes over ownership.

In such cases, the insured can file a title insurance claim to recover any losses that may have been incurred. The process begins with the insured submitting a claim to the title insurance company. The company then conducts an investigation into the title history of the property, and if the claim is found to be valid, the company will pay out a settlement to the insured.

When a title insurance claim is filed, the title insurance company will usually hire an attorney to handle the case. The attorney will investigate the title history of the property, reviewing public records, land surveys, and other relevant documents. This investigation is conducted to determine if there are any defects in the title to the property or if there are any disputes over ownership.

If the title insurance company determines that the claim is valid, it will provide the insured with a settlement. This can include compensation for any financial losses that the insured may have incurred as a result of the title defect or ownership dispute, as well as any legal fees or other costs associated with the claim. In some cases, the title insurance company may also choose to resolve the dispute directly with the other parties involved, rather than paying a settlement to the insured.

It is important to note that title insurance claims are not the same as other types of insurance claims. Unlike other types of insurance, such as health insurance or automobile insurance, title insurance claims are not filed to cover future events or potential losses. Instead, they are filed to address past events and losses that have already occurred. This means that the title insurance company is not responsible for any future losses that the insured may incur as a result of the title defect or dispute.

Overall, understanding the title insurance claim process is important for anyone who is involved in a real estate transaction. By having a basic understanding of how title insurance claims work, buyers, sellers, and lenders can protect their interests and ensure that they are fully informed about the risks associated with their property.

Preparing for a Title Insurance Claim

Gather Necessary Documents

Gathering the necessary documents is the first step in the title insurance claim process. The documentation required for a title insurance claim varies depending on the nature of the claim. However, the most common documents required for all claims are the title insurance policy, the deed, and the closing statement. These documents are essential in verifying the ownership history of the property, as well as the terms and conditions of the title insurance policy.

Other necessary documents that may need to be gathered include any contracts or agreements related to the property, such as purchase agreements, closing documents, or loan documents. Additionally, any correspondence with the title insurance company or any other party involved in the property’s ownership history should be collected and saved. This can include email exchanges, letters, or other forms of written communication.

If the title insurance claim involves any property damage, documentation such as repair invoices, appraisals, and inspection reports should be compiled. It is crucial to keep receipts and invoices for any expenses incurred during the repair process.

Once the necessary documents have been gathered, it is important to organize them in a clear and concise manner. Organizing the documents will ensure they are easily accessible when needed throughout the claim process. Adequately obtaining and organizing the relevant documents will speed up the claim process significantly, making the process less stressful and more straightforward.

Contact Your Title Insurance Company

When filing a claim for title insurance, it’s crucial to contact your title insurance company as soon as possible. This step is necessary to ensure that you receive prompt and efficient assistance throughout the claim process. Your title insurance company will assign a claims representative who will guide you through the claims process and answer any questions you may have.

It is important to ask your representative about the timeline for submitting the required documentation and any other information related to your claim. You should also provide your contact information so that your representative can reach you if additional information is needed.

When contacting your title insurance company, you should have all the necessary information and documents related to your claim ready. This includes the policy number, a copy of the title insurance policy itself, the purchase contract, and any other relevant documents such as property disclosures or inspection reports. You should also be prepared to provide a detailed explanation of the claim, including a description of the issue and any relevant events that led to the claim.

Your title insurance company may also require additional documentation to process your claim. This may include a copy of the deed, a property survey, or other documents related to the property. Your title insurance company will provide you with a list of the required documents for your claim, and may also assist you in obtaining any necessary documentation.

It’s important to remember that your title insurance company is there to help you throughout the claims process. They will work with you to gather the necessary information and documentation to process your claim, and will keep you updated on the status of your claim throughout the process. By following their instructions and providing the required documentation in a timely manner, you can help ensure a smooth and efficient claims process and receive the settlement you are entitled to under your policy.

File Your Claim

When it comes to filing a title insurance claim, it’s crucial to have all the necessary documents and information available. You should gather all documents related to your property’s title, including the title insurance policy, proof of ownership, and any evidence of claims that might be made against the property. Remember, it’s essential to provide as much evidence as possible to support your claim.

Once you’ve gathered all the necessary documents, the next step is to contact your title insurance company. Your title insurance company will be your primary point of contact throughout the claim process, and they’ll be able to provide you with guidance on how to proceed. You should be prepared to provide your contact information, the policy number, and a brief description of the loss or damage that’s occurred.

This information will help your insurer assess the validity of your claim and determine what steps need to be taken. When it’s time to file your claim, you’ll need to provide your insurer with all the information and documentation you’ve gathered. It’s essential to be as thorough and accurate as possible when submitting your claim. Your insurer will review your claim and determine if it meets the terms of your policy.

In most cases, your insurer may undertake an investigation to validate the claim further. If your claim is approved, your insurer will work with you to determine the appropriate resolution. This may include paying for the loss or damage or resolving title defects that may have caused the damage. Regardless of the outcome, it’s essential to stay in open communication with your insurer throughout the process.

Title Insurance Claim Investigation

Investigation Process

During the title insurance claim process, the investigation process is a crucial step to determine the validity of the claim and assess any potential liabilities. This process involves gathering necessary information from relevant parties and examining records related to the property. The investigation process typically starts by contacting the title insurance company to report the claim, providing relevant documentation, and explaining the issue at hand.

The company will then assign an investigator to proceed with the investigation, which may involve conducting a title search to identify any problems with the property’s title history, investigating the circumstances leading up to the loss or damage, and reviewing the insurance policy to determine the extent of coverage.

To perform a title search, the investigator will search public records including deeds, mortgages, liens, easements, and other documents that may affect the property’s title. The purpose of the title search is to identify any issues that may prevent the property from being transferred to a new owner and any potential claims against the property’s title. If any problems are found during the title search, the investigator will determine how they can affect the claim and advise the parties involved on how to proceed.

The title examination involves analyzing the findings of the title search and verifying the ownership status of the property and any liens or encumbrances. The investigator will also review the insurance policy to determine if the loss or damage is covered and assess the damages to the property. If the claim is valid, the investigator will work with the insurance company and the parties involved to resolve the issue and determine the payout amount, if applicable.

Overall, the investigation process is a vital step in the title insurance claim process. It allows for a thorough examination of the property’s title history, identification of any potential claims against the property, and assessment of the damages to the property. By conducting a comprehensive investigation, the parties involved can make informed decisions about how to proceed with the claim and work towards a resolution.

Title Search

The title search is a crucial component of the investigation process for the title insurance claim process. This investigation process consists of several steps that insurance providers take to ensure that they have all the necessary information to process a claim accurately. During a title search, insurance providers will examine public records and other relevant sources to determine if there are any encumbrances or defects on the property’s title.

These encumbrances or defects could include unpaid taxes, outstanding liens, or claims against the property. It is essential to conduct a thorough title search because if any encumbrances or defects exist on the property’s title, they could pose a risk to the lender or the property owner. If left undiscovered, these issues could cause problems for the new property owner, such as legal disputes or financial liabilities, which could lead to a loss.

Therefore, insurance providers invest significant time and resources in the title search process to ensure they have all the necessary information to make an informed decision about insuring the property. Several entities will be involved in the title search process, including public record keepers, title companies, and attorneys. These entities will work together to ensure that the property’s title is free from any defects or encumbrances before issuing an insurance policy.

For example, the title company may conduct a public records search to identify any liens or judgments against the property, while the attorney may review the documents to ensure that there are no issues with the property’s transfer of ownership. In conclusion, the title search is a vital step in the title insurance claim process that helps insurance providers uncover any encumbrances or defects on the property’s title.

Conducting a thorough title search can help mitigate the risks associated with issuing an insurance policy and protect lenders and property owners from potential financial liabilities. The collaboration between public record keepers, title companies, and attorneys ensures that the title search process is comprehensive and accurate, leaving clients confident that their insurance policy will protect their investment when they need it most.

Title Examination

During the title examination phase of the title insurance claim process, a thorough review of public records is conducted to ensure that the property in question has a clear title. This process involves examining deeds, mortgages, liens, judgments, and other documents related to the property to determine if there are any legal claims or title defects that would prevent the transfer of ownership.

The goal of this examination is to identify any issues that may affect the property’s title so that they can be addressed before the property is sold or transferred. Examining the title of a property is a crucial and complex process that requires extensive knowledge of real estate law, and it is typically carried out by a title examiner or attorney who specializes in title law.

One of the primary criteria checked during the title examination process is the chain of ownership for the property. This involves tracing the property’s ownership history back to its original owner to verify that all transfers of ownership were legally executed and documented. Any incorrect or missing information during the chain of ownership could result in a title defect and make it difficult to sell or transfer the property later on.

Another key aspect of the title examination process is checking for any liens, encumbrances, or judgments against the property. These could include unpaid property taxes, mechanic’s liens, or other outstanding debts owed by the previous owner. Any of these issues could result in a title defect and would need to be resolved before transferring ownership of the property.

Finally, the title examination process involves reviewing any covenants, conditions, and restrictions (CC&Rs) that apply to the property. CC&Rs are typically part of the property’s deed and can place restrictions on how the property can be used or developed. For example, a CC&R might prohibit certain types of businesses from operating on the property or limit the number of structures that can be built on the land. Reviewing these restrictions is important to ensure that the property can be used as intended without violating any legal agreements.

Overall, conducting a thorough title examination is a critical step in the title insurance claim process for ensuring that a property has a clear title and can be legally transferred to a new owner. This process involves an extensive review of public records to identify any title defects or other issues that may impact the property’s ownership. By addressing these issues early on, property buyers can avoid costly legal disputes or title issues down the road.

Title Insurance Policy Review

During the title insurance claim process, reviewing the title insurance policy is a crucial step in determining the coverage limits, exclusions, and exceptions. The policy review includes examining all legal documents related to the property and title to uncover any issues or disputes that may impact the claim. The documentation includes the original policy, endorsements, and any related correspondence.

An experienced title insurance attorney plays a vital role in assisting the claimant in this process, ensuring that all necessary documentation is gathered and examined. This review provides a thorough understanding of the coverage and exclusions under the policy, allowing the claimant to determine if the claim is within the policy’s scope. I

f the claim falls under the policy’s limits, the attorney will take the necessary steps to file the claim and begin the settlement process. In contrast, if the claim falls outside of the policy’s coverage limit, the attorney will assist the claimant in deciding on the best course of action to resolve the issue. Overall, an adequate title insurance policy review is essential for the success of a claim in the title insurance claim process.

Title Insurance Claim Resolution


During the title insurance claim process, the negotiation subsection is a critical step that can determine the overall outcome of the claim. Negotiations are conducted between the insured party and the insurance company to determine the appropriate settlement for the claim. This process typically involves reviewing the details of the claim, including any applicable policy provisions, exclusions, and endorsements, as well as relevant state and federal laws and regulations.

Effective negotiation requires a thorough understanding of these factors and the ability to advocate for the insured party’s best interests. The negotiation process typically begins with a demand letter that outlines the insured party’s claim and the desired settlement amount.

This letter serves as a starting point for negotiations and provides the insurance company with an opportunity to respond. The insurance company may accept the initial demand or provide a counteroffer that is lower than the insured party’s desired settlement. The negotiation process may continue back and forth until an agreement is reached or both parties reach an impasse.

During negotiations, the insured party should be prepared to provide additional documentation and evidence to support their claim. This may include property appraisals, repair estimates, photographs, and other relevant information. The insurance company will also conduct their own investigation to determine the validity of the claim and may request additional documentation from the insured party as well.

When negotiating a title insurance claim, it is essential to employ effective communication skills and remain professional at all times. It is crucial to be clear and concise in all communication and avoid making any unfounded assumptions or inflammatory statements. The negotiation process can be stressful and emotionally charged, but it is essential to remain calm and focused on achieving a positive outcome for all parties involved.

Ultimately, negotiation is a critical component of the title insurance claim process, and effective negotiation strategies can significantly impact the outcome of a claim. By understanding the relevant laws and regulations, advocating for the insured party’s best interests, and remaining professional and composed throughout the negotiation process, parties can work to achieve a mutually beneficial settlement for all involved.


The settlement is the most critical step in a title insurance claim process. Once the negotiation is over and the parties have agreed to the terms, the settlement agreement is drafted. The agreement is a legal document that lays out the terms of the settlement. The terms of the settlement include the amount of the settlement, who pays for what, and what actions each party must take to settle the dispute.

The settlement agreement is then sent to all parties involved for review and signatures. Once the document is signed, the agreed-upon payment is made. In a title insurance claim settlement, the payment is made to the claimant, and the insurance company takes the title to the property. The title insurance company then issues a new title to the new owner, free and clear of any encumbrances.

If there was a mortgage on the property, the settlement also includes paying off the mortgage. Once all parties have signed the settlement agreement, the settlement is considered final, and the claim is closed. If there are any disputes over the settlement agreement, they may be resolved through litigation. In conclusion, the settlement stage is a critical component of a title insurance claim process as it finalizes the negotiation terms and resolves the claim.


When a title insurance claim cannot be resolved through negotiation or settlement, litigation may be necessary. Title companies commonly have legal teams and resources available to handle any litigation that may arise from a claim. Underwriters also have an interest in minimizing their exposure to risk and may be involved in the litigation process as well.

It is important to note that litigation can be an expensive and time-consuming process, but it may be necessary to protect the insured’s interests. Before pursuing litigation, the insured should consult with their title insurance company and legal counsel to determine if litigation is the best course of action. If the decision is made to pursue litigation, the insured will need to provide documentation to support their claim, including the title policy, any relevant title documents, and evidence of damages.

The title insurance company may hire its own legal counsel to defend against the claim and will typically cover legal costs up to the policy limit. The litigation process will vary depending on the specific circumstances of the claim and the laws of the jurisdiction where the property is located. Generally, the process will involve filing a complaint, discovery, motion practice, and potentially a trial. It is important for the insured to actively participate in the litigation process and stay informed of the proceedings.

If the insured prevails in the litigation, they may be entitled to compensation for their damages, including legal fees. If the insured does not prevail, they may be responsible for paying the title insurance company’s legal fees. It is also possible for the parties to reach a settlement agreement during the litigation process, which can avoid the cost and uncertainty of a trial.

Conclusion of Title Insurance Claim

Importance of Title Insurance Claims

When discussing the title insurance claim process, it is important to recognize the significance of such claims. Title insurance exists to protect both lenders and homebuyers should any undiscovered claims turn up against the title of a property. This process benefits the lender by ensuring they will not face financial loss should any problems arise, while also providing assurance to the homebuyer that the property they are purchasing has a clean title.

Title insurance claims can arise in many situations, such as when there are outstanding liens on the property or when there are errors in public records that could affect the title. These claims may seem infrequent, but in reality, they can occur at any time, making title insurance an essential part of the home buying process. Thus, it is important to understand the claim process, how it works, and what steps to take when necessary.

Final Thoughts on Title Insurance Claim Process

Understanding the title insurance claim process is crucial in protecting your property investment. After going through the necessary procedures in purchasing your property, it is essential to ensure that you obtain a comprehensive title insurance policy. In case of any issues arising during the transfer of ownership, or if any unanticipated defects on the property surface, a title insurance claim can help remedy the issue by providing financial compensation.

The insurance company will protect your ownership rights in case of any legal disputes, and you won’t have to cover the expenses of mounting a legal defense or paying for any previous liens or encumbrances.

However, understanding the title insurance claim process can be challenging to many property owners. Even though the insurance policy offers protection against a variety of issues, filing a claim involves a lengthy and complicated process that requires professional guidance and support. It is vital to have a reliable title insurance partner by your side to navigate the intricate process and offer you assistance throughout.

A reliable title insurance partner should offer their clients a comprehensive insurance policy that has a clear explanation of the insurance coverage, the claim procedure, and the policy limits. Moreover, they should be transparent about the claims’ prerequisites, qualifications, and the duration for filing a claim.

When filing a title insurance claim, it is crucial to ensure that you have all the necessary documentation, such as your title insurance policy, copy of the deed, proof of loss, and any evidence that supports your claim. Your title insurance partner will help you draft your claim and submit it to the insurance company.

They will be responsible for communicating with the insurer, ensuring the claim is received, reviewing the details, and providing an initial response. If your claim is accepted, the insurance company will provide the compensation agreed and help you resolve any issues on the property. However, if your claim is denied, your title insurance partner can help you to dispute the claim and involve legal means to seek compensation.

Title Insurance Claim Process FAQs

What is Title Insurance and why do I need it?

Title Insurance is a type of insurance policy that protects you from financial loss related to challenges against the ownership of your property. You need it because it ensures that you have a clear title to your property and protects your investment in case someone makes a claim against your property.

How do I make a Title Insurance claim?

If you think that you have a Title Insurance claim, you should contact your Title Insurance company and provide them with the details of your claim. The Title Insurance company will then investigate your claim and decide if they will provide coverage.

What kind of problems can Title Insurance protect me from?

Title Insurance can protect you from a variety of problems, including unknown liens on the property, forgery or fraud in the title documents, undisclosed heirs, and mistakes in public records.

How long does it take to process a Title Insurance claim?

The time it takes to process a Title Insurance claim depends on the complexity of the claim. Some claims may be resolved in just a few weeks, while others may take several months or longer.

What are the costs associated with making a Title Insurance claim?

The costs associated with making a Title Insurance claim depend on the specifics of your claim. In general, you will need to pay a claim fee and may need to provide documentation and evidence to support your claim.

Can I appeal a decision made by my Title Insurance company?

If you disagree with a decision made by your Title Insurance company, you can appeal the decision. You should contact your Title Insurance company to find out how to initiate an appeal and what the process entails.

About the Author

As a native Washingtonian, Carlos Reyes’ journey in the real estate industry began more than 15 years ago when he started an online real estate company. Since then, he’s helped more than 700 individuals and families as a real estate broker achieve their real estate goals across Virginia, Maryland and Washington, DC.

Carlos now helps real estate agents grow their business by teaching business fundamentals, execution, and leadership.

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