What Is a Title Insurance Claim and When Should You File One?

Published: September 2026

You bought the property years ago and thought ownership was settled. Then a neighbor produces an easement you never knew about, or a lender records a lien tied to a prior owner. This is the moment a title insurance claim matters. Most buyers pay for a policy at closing, file it away, and never think about it again.

Knowing what that policy covers, and when to put your insurer on notice, can decide whether you carry the loss or your insurer does.

What Is a Title Insurance Claim?

A title insurance claim is a formal request asking your title insurer to make good on the policy you bought at closing. Unlike most insurance, which protects against future events, title insurance looks backward. It covers problems that already existed in the ownership history on the day your policy took effect, even though nobody found them during the title search.

Ohio Revised Code § 3953.01 defines title insurance as insuring or indemnifying (holding harmless) owners of real property against loss from recorded liens or encumbrances on the title, defects in the title, or the unmarketability of the title. Ohio also requires that a policy be issued only after an examination of the title, under Ohio Rev. Code § 3953.07, which is why claims often trace back to something the search missed.

Owner’s Policy Versus Lender’s Policy

This distinction matters enormously, and many buyers learn it the hard way. A lender’s policy protects the lender up to the loan balance. It does nothing for you.

An owner’s policy protects your equity in the property. If you only purchased a lender’s policy at closing, then you may have no coverage of your own to claim against. Check your closing package before you assume you are covered.

What Does Title Insurance Cover?

Coverage varies by policy, but claims commonly arise from:

• Undisclosed recorded liens, including tax liens, judgment liens, or mechanic’s liens tied to prior owners;
• Errors in the public record, such as a misindexed deed or an incorrect legal description;
• Forged or fraudulent deeds, mortgages, or releases in the chain of title;
• Missing heirs or prior owners who never properly conveyed their interests;
• Undisclosed easements or restrictive covenants limiting how you use the property; and,
• Defects that make the title unmarketable when you try to sell or refinance.

Many owner’s policies also include a duty to defend. That means the insurer may be obligated to hire and pay an attorney when someone brings a covered claim against your title, which is often worth more than the payout itself.

When Should You File a Title Insurance Claim?

File as soon as you learn of a potential problem. Do not wait until you understand the full scope, and do not wait until a lawsuit is served.

Situations that warrant prompt notice include:

• Someone asserts an ownership interest, easement, or right of way over your property;
• A recorded lien or judgment appears against the property from before you bought it;
• A survey reveals your legal description does not match the property lines;
• A buyer’s title company flags a defect that blocks your sale or refinance; or,
• You receive a demand letter or lawsuit challenging your title.

Most policies require prompt written notice, and a late claim gives the insurer an argument that the delay caused prejudice, negating any duty for them to defend you. Notice costs you nothing and preserves your position, so err toward reporting.

What Is Not Covered by Title Insurance?

Understanding the exclusions prevents wasted effort. Policies typically do not cover:

• Matters listed as exceptions in Schedule B, which is why reading that schedule at closing matters;
• Defects you knew about but did not disclose to the insurer;
• Problems created after the policy date, including liens from your own borrowing;
• Zoning limits, building code issues, and governmental regulations;
• Boundary and survey discrepancies, unless you purchased a survey endorsement; and,
• Environmental conditions and physical defects in the structure.

That last point deserves emphasis. Title insurance covers ownership rights, not property condition. A leaking roof or a cracked foundation may be a fraud or nondisclosure issue involving the seller, not a title claim.

How Do You File a Title Insurance Claim?

The process is more structured than most owners expect. Practical steps:

1. Locate your owner’s policy, including Schedules A and B and any and all endorsements;
2. Send written notice to the claims department at the address stated in the policy, not to the closing agent (the policy will tell you how to notify the policy maker);
3. Describe the defect specifically and attach supporting documents, such as the survey, lien filing, deed, or demand letter;
4. Keep copies of everything you send, along with dates; and,
5. Respond promptly to requests for information while keeping your own record of the exchange.

Once the insurer accepts a claim, then it generally has options: It may clear the defect by paying off a lien or obtaining a release, defend you in litigation over the title, negotiate with the adverse party, or pay you for the loss in value up to your policy limits.

Note that the insurer usually chooses the remedy, not you. If the company can cure the defect for less than paying your claimed loss, then it will typically do that instead.

What If Your Title Insurance Claim Is Denied?

A denial is not necessarily the end. Insurers deny claims for many reasons, and some denials rest on a debatable reading of the policy or an overly broad application of a Schedule B exception.

Your options after a denial may include:

• Requesting the specific policy language the insurer relied on, in writing;
• Submitting additional evidence, such as a survey or title abstract, to rebut the stated basis;
• Filing suit for breach of the insurance contract and/or a declaratory judgment stating they have a duty to defend you; or,
• Pursuing a bad faith claim, which in Ohio requires showing the insurer lacked justification for its refusal to pay. This last option should be one of last resort, as it is difficult and costly to prove.

Deadlines apply here too. A claim on the policy is a written contract claim, and Ohio Revised Code § 2305.06 generally allows six years for written contract claims. Your policy may also contain its own shorter limits and conditions, so read it before you rely on the statute, as the policy will control as a matter of contract.

Getting Help With a Title Insurance Claim in Ohio

A title insurance claim is often the most cost-effective way to resolve a defect in your ownership, but the outcome depends on your policy language, the Schedule B exceptions, and how clearly you document the problem. Reviewing the policy before you file puts you in a stronger position, especially if the insurer pushes back.

Cavell Law represents Ohio property owners in title disputes and coverage fights with insurers. If a defect has surfaced on your property, you can review the firm’s title dispute and real estate litigation work, or contact Cavell Law to discuss your policy.