I was issued a standard GA title insurance on Alta form by an agent. The policy has exceptions listed in Schedule B. One of the exceptions has somewhat ambiguous language related to easement and encumbrances. The insurance company is taking a very broad interpretation of the exception saying that any and all claims related to easements are excluded, whether we purchased those easements or not.
Such interpretation contradicts the exception language detailed in the Title Commitment form issued by the Insurance Company. I understand the Title Commitment form is in essence what dictates these exceptions, and only excludes from coverage easement obligations that come with the property (deeds or surveys purchased). But if someone wanted to get an easement on our property that we did not purchase that would be covered.
The title insurance company keeps denying our claim for coverage of legal expenses for someone claiming an easement on our property that was not in any of our deeds, surveys nor in our chain of titles. They keep denying our claim, ignore substantive questions and send us on wild goose chases. They are unable to explain how the exceptions in the policy could possibly be more expansive then those committed to in the Title Commitment form.
It feels like they are looking to see if we file a lawsuit before proceeding to settle as their responses simply do not make sense. Doesn’t matter what we say the answer is “No, we are closing the file.”
I am 100% sure GA law and standard GA policy affords us coverage and can’t believe the hubris that it is taking this shop to deny. This was also confirmed by our insurance agent. We really don’t want to start another lawsuit, and are trying to find ways to entice the company to do the right thing.
Not sure the DOI complaint will help. I am afraid once we escalate we close all doors to communicate with the company directly.
Is there some leverage point within the title insurance to escalate? What avenue would you suggest we try?
I can’t believe the path we have to travel to get the coverage we paid for.