Legal Question in Real Estate Law in Virginia

Title Insurance
My title insurance company is taking an inordinate amount of time to settle my claim (they have accepted my claim), and the delay is very costly. My lawyer says even if I sue them, I can never recover more than the amount of the policy, even if they take two years to settle the claim. Are there any cases bearing on this subject?

Asked on 12/16/08, 2:39 pm

2 Answers from Attorneys

Jonathon Moseley Moseley & Associates Law Firm

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Re: Title Insurance

I think you need to look at what the policy says. What your lawyer is probably saying is that the insurance policy excludes other damages. That is, you have agreed in the contract (policy) not to claim any other damages from the insurance company.

So read the policy carefully for limitations on claims.

It is possible to sue them for bad faith, although that might be difficult when they have not actually said no... just delayed.

However, in my experience, you may think they are delaying, but they may not have some information that they need. I would strongly encourage you to talk to them and find out if they are waiting for some document or information or the happening of some event.

For example, if there is an ongoing lawsuit about the property, your title insurance will not pay off until it is 100% certain that you have actually lost money. If there is still the possibility that you might not lose anything, they are not going to pay money simply on speculation.

Answered on 12/17/08, 8:32 am

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