Why do we need title insurance? Let us count the ways… Below is a scenario that came about in an older, well established neighborhood with a rich history of utility technologies (i.e. a variety of plumbing and utility technologies from the last 80 or so years). Needless to say, in this case a title issue arose when plumbing and utility upgrades became necessary.
The Old Utility Agreement Rears its Head
The Old Agreement
In 1975 an agreement was recorded between Bill Home Owner and the local utility company. This agreement allowed a sub-standard temporary hook-up to utilities (a water line). The agreement stated that the owner would pay a fee at a later time to connect to the water system when the utility company installs / upgrades their system.
Fast forward decades…
The property had been bought and sold several times since the agreement was established. But, when the utility company completed their upgrade, this triggered the need for the homeowner to upgrade their connection to the utility per the 1975 agreement. The cost of this upgrade in today’s dollars is approximately $5,000, a substantial amount that the current home owner did not anticipate when purchasing the home.
Jake and Susan, the present home owners, tendered a claim to Ticor Title with whom they are insured. And in this particular case, it was determined that the matter was covered under their title insurance policy. Ticor coordinated with Jake and Susan and the utility company to pay the outstanding amount owed to the utility company per the agreement. Ticor also received a release of the 1975 agreement from the utility company and recorded the release in order to remove the cloud on title.
Ticor Title is backed by the nation’s largest title insurance claims reserves, giving us a strong financial position and unsurpassed ability to pay claims for our insured. If you are unsure of your current title insurance company’s solvency or ability to pay claims, or have questions about your coverage, please contact us.