Title Insurance Compensates for Loss Based on the Highest and Best Use, Not the Use at the Time of Discovery of the Defect.

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Title Insurance Compensates for Loss Based on the Highest and Best Use, Not the Use at the Time of Discovery of the Defect.

A title insurance policy does not insure against future events. Instead, title insurance indemnifies the insured against loss resulting from differences between the actual title and the record title as of the date title is insured. Liability is often clear due to missed documents in the chain of title. Once liability is established the problem is to decide how to calculate what the damage is. In a recent decision the title insurer argued that th…