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The Claims Process in Title Insurance: A Detailed Overview

Getting a mortgage is an important investment you must not take lightly. The overall cost of a mortgage differs from lender to lender. However, one major fee you need to pay has to do with the title insurance. Before you can close your mortgage, the insurance company must verify that there is no one claiming your property.

Title insurance is important because it serves as protection against issues or complications with the claim on your property. You can visit to find out more about protecting your property. If you lack this important insurance, the government or an individual can possess your home when they file a claim.

If this is new to you and looking confusing, you don’t have to be so worried. To ensure no one takes your property from you, we’ll discuss in detail the important things you need to know about the title insurance claim process. If you’re ready, let’s begin…

Title Insurance Claim Explained

First thing first, let’s explain what the title insurance claim is all about. This is the process where an entity either the government, lenders, or individuals file a claim against your home. In other words, they say they have a right to a portion or the entire property.

A typical example is when the previous owner of your property on mortgage asks you to pay the remaining part of the mortgage they didn’t complete. This usually occurs if the insurance company you hired didn’t discover this outstanding property loan. In such a case, if you refuse to pay it off, and there’s no title insurance, the person making the claim can take ownership of your property. This can be achieved through a foreclosure process

On the other hand, if you possess title insurance, you can file your claim on the property with the title insurer you hired; they will then go ahead to settle the case. Sometimes, they might still have to pay for the previous mortgage. Alternatively, they could negotiate a deal that allows you to retain possession without spending a dime on the old loan that you know nothing about.

Another common issue that leads to title insurance claims is property boundaries. You can read this article for other legal solutions to property boundary disputes. If you unknowingly erect a fence on your neighbor’s land, they can file a claim that you remove your fence from their property.

You can deal with this issue, by filing a claim with your insurer. The insurer might get a contractor to move the fence. This will save you the costs of spending the money on the correction yourself.

How to File a Title Claim with Your Insurer

So far, we’ve said severally that you need to file a title claim with your insurer whenever anyone files a claim. However, we’ve not told you how to go about it. We’ll talk about that in this section…

When you get such a notice, letting your insurer know is not much of a big deal. For most companies, you don’t have to deal with any paperwork; a simple phone call will suffice. You can find the contact information of your broker on the title insurance policy. If the information is not there, reach out to your lender.

Another means of notifying them can be through a simple email. If you don’t mind filling out a form, you can check the website of the company and fill out the form. You’ll be required to provide information such as name, policy number, and address.

As we said most companies don’t require paperwork to begin the process, but some do. If your insurer is one of such, you’ll have to send the notification via writing. When you do this ensure you use certified mail to send the letter, and then ask for a return receipt. This step this will ensure that you know when your insurer gets the letter.

How the Title Insurance Claim Works

After you notify your insurer, you don’t have to do anything else. They will take up the case and deal with it. After all, this is why you got the policy in the first place.

Although paying for this coverage can be expensive, you only have to pay for it once when closing your mortgage. It remains functional until you decide to sell the property. Therefore, it’s a great investment and method of protecting your home.

The type of right the entity is claiming over your home determines the manner of approach in resolving the case. Negotiation is the usual way most companies employ in resolving cases. However, if the claimant is adamant, it might lead to a court case.

It’s important we mention that the insurance serves as protection against previous ownership rights. That is anything that occurred before you got the coverage. Therefore, it doesn’t protect you if you default on house loan payments or taxes. If you default, you must pay to avoid the foreclosure of your property.

Title Claim Types

Did you know that there are diverse types of ownership rights claims? There are several of them, but we’ll focus on the common ones. Here they are:

  • Mortgage Liens: This happens when the previous owner of the property fails to pay their mortgage, HOA fees, or taxes. You can visit to find out more about HOA fees. Easements that grant others access to the property can also lead to ownership claims.
  • Malfeasance: When a criminal forges your deed, it can lead to a title claim.
  • Search Negligence: Your insurer might fail to discover previous and existing claims during their search.

Processes like these are best handled by professionals who truly understand the terrain. If for example the property in question is located around Wayne, Pennsylvania, it only makes sense for you to choose Title Insurance provider within this general area. This will make things a lot easier for you.


Title insurance is very important when it comes to protecting your property. When you have an ownership dispute, filing a claim can protect you from losing your home. In this article, we’ve provided you with a detailed overview of this process.


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About the Author

Kaya Wittenburg

Blog Author and CEO

Kaya Wittenburg is the Founder and CEO of Sky Five Properties. Since the age of 10, real estate has been deeply ingrained into his thoughts. With world-class negotiation and deal-making skills, he brings a highly impactful presence into every transaction that he touches.

He is here to help you use real estate as a vehicle to develop your own personal empire and feel deeply satisfied along the way. If you have an interest in buying, selling or renting property in South Florida, contact Kaya today.

Feel free to call me at: (305) 357-0635
or contact via email: