Title insurance.
Author | Conner, W. Theodore |
Position | Letters - Letter to the editor |
The article, "Now or Then? The Time of Loss in Title Insurance" (Dec. 2011), provided an analysis of policy provisions for determining loss. The article indicates that there is a lack of definition regarding what date should be used when determining the value of the real property if a title insurer is to pay diminution in value under the terms of the policy.
The conclusion may be correct as it relates to the 1992 version of the policy forms; however, since March 1, 2011, title insurers have been issuing the 2006 version of the ALTA policy. This policy provides that if a title insurer elects to defend or prosecute litigation to cure a covered title matter, and is unsuccessful, the insured shall have the right to have the loss determined either as of the date of the claim or the date it is settled and paid. Additionally, current policies provide that the amount of insurance is increased by 10 percent if a title insurer elects to pursue litigation to cure a...
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