Frequently Asked Questions

Why do I need title insurance?

Title insurance is a policy that protects you against loss should the condition of title to your land turn out to be other than as insured.

What if I have a problem? Do I have to lose my property to make a claim?

Not at all. At the mere hint of a claim adverse to your title, you should contact your title insurer or the agent who issued your policy. Title insurance includes coverage for legal expenses which may be necessary to investigate, litigate, or settle an adverse claim.

If my lender gets title insurance for its mortgage, why do I need a separate policy for myself?

The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest — and there is no provision for payment of your legal expenses. When a loan policy is being issued, the small additional expense of an owner's policy is a bargain.

What does this cost?

The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, and coverage continues in effect for as long as you have an interest in the covered property. If you should die, coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues. Likewise, if a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage continues to protect your security interest in the property.

Can you be more specific about the types of claims, or risks, covered by title insurance?

Sure. There are basically three levels of coverage: standard coverage, extended coverage, and our most comprehensive "Policy" coverage.

• Forgery and impersonation
• Lack of competency, capacity, or legal authority of a party
• A deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner)
• An undisclosed (but recorded) prior mortgage or lien
• An undisclosed (but recorded) easement or use restriction
• Erroneous or inadequate legal descriptions
• Lack of a right of access
• A deed not properly recorded

• Off-record matters, such as claims for adverse possession or prescriptive easement
• A deed to land with buildings encroaching on land of another
• An incorrect survey
• Silent (off-record) liens, such as mechanics' or estate tax liens
• Pre-existing violations of subdivision laws, zoning ordinances, or CC&Rs

• Post-policy forgery
• Forced removal of improvements due to lack of a building permit (subject to deductible)
• Post-policy construction of improvements by a neighbor onto insured land
• Location and dimensions of insured land (survey not required)