The Title Insurance Claims Process

What Title Insurance Covers

Title insurance protects homeowners from hidden risks to their property's title, which is the legal record of ownership. When you close on a home, your title company conducts a thorough title search to identify and resolve any issues before the transaction is complete. But some risks can remain hidden even after the most careful search, and that's where title insurance comes in. Your policy covers you if a problem with your title surfaces after closing.

The types of risks covered by an owner's title insurance policy are more common than most homeowners realize. "After 15 years in the industry, I've seen situations that most people would never imagine could happen," said Emily Grant, a closing attorney and member at Bluegrass Land Title. "People build houses on the wrong lot, properties have descriptions that don't match reality, and boundary disputes come up more often than you'd think." Title issues can affect any property regardless of its age, location, or price.

Some of the most common situations that lead to title insurance claims include:

• Boundary and property line disputes. A neighbor builds a structure that encroaches onto your property, or a survey reveals that your property lines aren't where everyone assumed they were.
• Errors in property descriptions or public records. Mistakes in legal descriptions, lot numbering, or recorded documents can create confusion about what you actually own.
• Forgery or fraud in title documents. Forged signatures on deeds or other fraudulent documents in the chain of title can threaten your ownership.
• Missing or undisclosed heirs. A previously unknown heir may surface with a legitimate claim to the property after your purchase.
• Undisclosed liens. A lien from a previous owner, such as an unpaid contractor or outstanding judgment, may appear after closing.
• Improperly executed deeds. A prior transfer of the property may not have been completed correctly, leaving a former owner or their spouse with a potential claim.
• Easement issues. An undisclosed or improperly recorded easement may affect how you can use your property.

Your title insurance policy will list the specific risks covered under your plan, as well as any exceptions in Schedule B that are not covered. The one-time premium you pay at closing covers you for as long as you or your heirs own the property, and Bluegrass Land Title defaults to enhanced owner's policies on eligible transactions, which extend protection to include certain risks that may arise after the policy is issued.

How to File a Title Insurance Claim

Once you've identified a potential title issue, the process of filing a claim is more straightforward than most homeowners expect. There are really only a few steps, and your title company, as an agent of the title insurance company, is there to support and advocate for you along the way.

Recognize That You May Have a Covered Issue

Title insurance covers specific risks that are listed on the front of your policy. Not every property issue is a title issue, but many are. If something has come up that affects your ownership, your property boundaries, or your ability to use or sell your property, there's a good chance it falls under your coverage. If you're not sure, your title company can help you determine whether your situation qualifies.

Locate Your Title Insurance Policy

If you have your policy, pull it out and note your policy number. This will help move things along once you're ready to file. If you can't find your policy or aren't sure whether you purchased title insurance when you closed on your home, don't worry. Your title company or closing attorney can look up the transaction and confirm whether a policy was issued.

Start with Your Title Company or Closing Attorney

Before you contact the title insurance provider directly, reach out to your title company or closing attorney. They can confirm your coverage, help you understand whether your situation is likely covered, and, in many cases, connect you directly with the title insurance underwriter. Your title company works with title insurance underwriters regularly and understands how the claims process works on their end, which means they can point you to the right contact and help you avoid any unnecessary confusion about where to start. 

At Bluegrass Land Title, this is part of how we support homeowners after closing. "When someone calls with a potential claim, the first thing I do is pull up their file and see if they have a title insurance policy," Grant said. "From there, we help connect them with the title insurance company so they're not navigating that process alone."

Provide a Description of the Claim to the Title Insurance Company

Whether your title company connects you directly or you reach out to the insurance provider using the contact information on your policy, the next step is to describe the issue. (A straightforward description of the problem is all that's needed.) From there, the title insurance company assigns claims counsel, and the claim is in their hands.

Throughout this process, homeowners aren't expected to do legal research or interpret their title exam. The title insurance company and its claims counsel handle the investigation and resolution. The homeowner's role is limited to answering basic factual questions about the situation, like how the issue came to their attention or who the other parties involved are. 

As Grant explains, "They're not going back to the client with anything that's going to require them to do research. They may ask basic factual questions, but that's it." The goal of the title insurance claims process is to take the burden off the homeowner, not add to it.

What Happens After You File a Title Insurance Claim

After receiving a claim, the title insurance company takes over and begins investigating the issue. This includes reviewing the title work from the original transaction, examining the circumstances of the claim, and determining the best path to resolution. If the situation requires legal action, the title insurance company hires outside counsel, covers the legal fees, and manages the litigation on the homeowner's behalf. The homeowner doesn't need to find an attorney or coordinate the legal process themselves.

If the claim results in a financial loss, the policy is designed to make the homeowner whole. For example, if a homeowner purchased a property believing they owned a particular parcel of land, like a back acre included in the listing, and a survey or legal dispute later reveals they don't, the title insurance company would reimburse them for the value of that land. 

The same principle applies across other types of covered claims. For instance, if a lien from a previous owner surfaces after closing, the title insurance company works to resolve it so it no longer affects your property. The goal is always to restore what the homeowner lost, whether that means correcting the issue directly or providing financial compensation for loss.

While the homeowner's involvement is minimal, the title insurance company's claims counsel is working behind the scenes. They're reviewing the title work from the original transaction, researching the history of the issue, and building the case for resolution. If they need input from the homeowner, it's limited to the basics: how the issue came to their attention, or contact information for the other parties involved. The investigative and legal work is handled entirely by the claims team.

Grant noted that the experience homeowners have after filing a claim speaks for itself. "Once someone lets me know they have a claim and we connect them with the title insurance company, I rarely hear from them again," she said. "If the process were difficult for the homeowner, we'd be hearing about it."

Why the Claims Process Works Better Than You'd Expect

For most people, the phrase "insurance claim" brings to mind a frustrating experience. Other forms of insurance have conditioned homeowners to expect pushback, paperwork, and long waits for resolution. However, title insurance doesn't work that way. Legitimate claims are rarely denied, and the process is designed to be managed for the homeowner rather than by them.

Part of what makes title insurance different is the structure of the coverage itself. Unlike other types of insurance, where you pay premiums on an ongoing basis, title insurance is a one-time purchase at closing that protects you for as long as you or your heirs own the property. That single premium covers not just the financial protection but also the cost of investigation, legal defense, and resolution if a covered issue ever arises.

Your title company also plays a role in making the claims process work. At Bluegrass Land Title, we don't just connect homeowners with the title insurance underwriter and step away. As Kentucky's largest title agent, Bluegrass Land Title has established relationships with its underwriting partners and works with them on a daily basis. When a homeowner has a claim, those relationships matter.

Because Bluegrass Land Title works closely with its underwriting partners, the team is positioned to advocate for homeowners throughout the claims process. That might mean helping a homeowner clearly communicate the details of their situation to claims counsel, following up to make sure a claim is progressing, or stepping in to provide additional context from the original transaction file. "We want to make sure the title insurance company has the full picture," Grant said. "If we can help them better understand a claim, we're going to do that."

At the end of the day, your title company's role doesn't end at closing. They're a resource you can come back to if a title issue ever comes up, and the right title company will make sure you don't have to navigate the claims process alone.