TITLE INSURANCE CLAIMS
What is Title Insurance?
Title insurance indemnifies a property owner or the lender against financial loss from defects in title to real property. In the case of an owner, the policy protects against the loss of the full market value of the property resulting from undisclosed defects and liens. A lender’s policy protects against a loss caused by the lender’s loan not being repaid because the value of the secured property is impaired by undisclosed liens or defects.
When does a title claim arise?
Because title insurance policies are indemnity policies, no claim is normally perfected until an actual loss has occurred.
When does Title Insurance pay?
Title insurance is different from other insurance policies. It does not guarantee perfect title but rather is a promise to pay damages caused by title defects that the title company should have discovered. But, just because a problem in the title is subsequently identified, the title insurance policy does not automatically have to pay. Instead, it can take action, such as filing a lawsuit, to correct the defect. The title insurance company can choose to make a payment to the policy holder or remedy the defect. When the title insurance company elects to try and remedy the defect rather than pay, the resulting delay can cause significant losses to the property owner.
What is an action to Quite Title?
An action to quiet title is a lawsuit that is field in order to establish title to real or personal property.
When do I need a lawyer?
An experienced insurance lawyer can help you get your title claim resolved as quickly as possible. Ultimately, the decision to hire an attorney depends on the specific facts of your situation.
Dealing with a title insurance company can be one of the most frustrating experiences there is. When you make a title insurance claim, most expect a quick payment or resolution from your title insurer. However, the investigation and subsequent attempt to remedy the title defect can drag on indefinitely. Sometimes the title insurance company even files suit against the property owner claiming that it does not have to do anything.
When does “bad faith” occur?
All contracts in Mississippi have an implied duty of good faith and fair dealing. Bad faith occurs when the title insurance company denies or delays a claim without an arguable basis for doing so.
To discuss how one of our lawyers can assist you with your title claim, contact us online or call our office at 601-957-3101.