What is a title insurance claim?

A title insurance claim is specifically a request for compensation for losses incurred as a result of a covered title defect. This defect may be an issue such as an unnoticed lien, an error in the property description, or other matters that were not disclosed prior to the purchase of the property.

By having title insurance, homeowners protect themselves from potential financial losses that might arise if a previously unknown issue with the title is discovered after they have purchased the property. When they file a claim, they are seeking coverage as outlined in their policy, which typically includes legal defense against claims as well as compensation for financial loss due to defects in the title.

Each of the other options relates to aspects of real estate transactions but does not capture the essence of what a title insurance claim is. Disputes regarding ownership focus more on legal arguments over property rights, notifications of impending foreclosure pertain to mortgage issues rather than title defects, and requests for verification of public records involve due diligence rather than claims for compensation associated with title insurance.