Title insurance protects and is an important investment in your property. The indemnity policies are designed to protect you from losses due to defects in the title, which occurred before you took ownership of the property. Although claims against a property are rare, you might find yourself involved in one and should know what to do if that happens.
Determine Your Losses and Exclusions
It is very important to determine whether or not you’ve suffered a loss as a result of the claim against the property. Without a proven loss, the policy is unenforceable. Losses typically take the form of loss of use or financial loss. Also important, check your policy to see if the claim being made against the property was listed as an exclusion. It’s possible the defect was found during your title search, but you’ve forgotten about it. If it was discovered during the title search, the defect would have been corrected or added to the policy as an exclusion. If it is an exclusion, it will not be covered by the title insurance policy.
If you’ve determined that you have suffered a loss and the claim is not listed as an exclusion, you should contact your title insurance agency as soon as you discover the loss.
Let The Title Insurance Agency Take Over
The agent will probably ask you to provide written documentation and proof of loss before the claim is investigated. Specific details about how to file a claim with your particular title insurance agency can be found in your title insurance policy, which you were given a copy of when you closed on the property.
At Title Junction, our Fort Myers title insurance agents are well-versed in how to handle claims against a property. Your situation will be investigated; the policy and its exclusions examined and the agency will determine whether or not the loss will be covered by the policy. You will receive written notice explaining why or why not your claim will be covered.
Fortunately, the same policy that protects you from defects in the title also commits the insurance company to defend you from claims made against the property. Even if the agency ultimately determines that no loss has occurred, they are still required to defend you against the claim. This may mean litigation or it may be resolved without going to court. Either way, you can rest assured that someone familiar with the intricacies of title insurance and property law will be representing you.
Choose The Right Agency
Throughout Florida and in Fort Myers, escrow and title insurance agencies can be chosen by the seller or buyer, although many simply choose to go with the agency recommended by their realtor or lender. Representing you throughout a claim is just one reason you should do your research and choose a title insurance agency that you feel comfortable with and one that has the expertise you want. There may come a time when you will appreciate a company that prides itself on customer service and satisfaction.