What is actually insured under an Owners' comprehensive title insurance policy?

A comprehensive title insurance policy indemnifies the owner against loss resulting from any covered risks under the policy. Significant risks covered by the policy include:

  • Lack of ownership
  • Fraud, forgery, duress & incompetency
  • Documents not being properly signed or authorised
  • Invalid transfers
  • Any defects in title
  • Encumbrances on title
  • 3rd parties interests in the property
  • Title defects resulting from a change of law

Typical exclusions of a title insurance policy are:

  • Illegal use of property, physical and environmental issues
  • Eminent domain, resumption or expropriation
  • Risks known or created by the insured
  • Insolvency
  • Claims relating to water & natural resources
  • Aboriginal claims
  • War, etc

What is Covered under a Lender's comprehensive title insurance policy?
How much does it cost?
Why does someone need title insurance when they can rely on their lawyer?
When should I use title insurance?
Will you pay out to both the owner and the bank?
Does the owner need to do anything to prove title defects?
What happens if my property increases in value?
What sort of major title defects are uninsurable?
Do you cover illegal structures?
How do you settle claims? And how long does that take?

 

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