Wednesday, April 02, 2008

query: filing a claim for title insurance

Hi Diane,

I read your blog about filing a claim with the title insurance company. I've never done it before, but it looks like filing a claim like any other kind of insurance.

Do you think its necessary to hire an attorney to do this? The reason I ask, is there are other people in this deal ready to hire an attorney and pay a $15,000 retainer to do this. Would the title company pay legal costs too?


You can hire an attorney but you'll likely pay THAT attorney's bill yourself. Make the claim with the title company in writing and send it by certified mail. You'll need evidence of the time of receipt. Make this initial claim immediately. An attorney can help you draft it, if you like, but time is of the essence and you have a duty to mitigate damages.

The title company has to option of paying a claim or defending you, so that means they MAY hire legal counsel and take the matter to court.

So, it's possible that you will be working with two attorneys, the one you are paying and the one hired by the title company.

It's your call which I believe really depends on whether you are comfortable drafting a claim yourself and/or whether you believe the title company is treating you fairly.

Remember that you are dealing with the title company listed on the jacket of your owner policy, not the title agent or attorney who might have issued the policy.

Thank you for the question and I'll be posting it today. Good luck!

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