Our holistic approach to commercial title insurance coverage
Jun 6th, 2019 | By FCT
When it comes to protecting their clients, some legal professionals believe that a single-risk policy like a “survey replacement” or “registration gap” policy coupled with a title opinion is enough. Others prefer to rely on the full coverage of a title policy.
Did you know that 52% of claims paid by FCT relate to risks that would not be covered by a title opinion, survey replacement or registration gap policy?
As most legal professionals know, real estate is one of the riskiest areas of law.*
While the single-risk policies can certainly be useful to your clients, our title insurance policy offers the same closing efficiencies, but with considerably more coverage. In addition to survey replacement and registration gap coverage, some of the claims covered by title insurance include:
- Duty to pay your client’s legal fees if their interest in the property is ever challenged as a result of a risk covered under the title policy. Examples include encroachment claims from abutting landowners and possessory claims to title.
- Title defects such as prior charges, liens or encumbrances that may affect the interest in the property.
- Errors in written responses from governmental authorities pertaining to outstanding work orders, deficiency notices or the zoning of the land.
- Fraud and forgery that happened before, during or after the transaction closes†.
- Super-priority lien claims for monies owing to the government prior to the closing date and take priority over the insured mortgage (Loan only).
- Outstanding work orders, including coverage for improvements presently on the land that were built without the proper building or occupancy permits (Loan only).
- And more!
At FCT, we have a holistic approach to title insurance coverage and don’t believe in carving out coverages into separate policies. Our experienced underwriters actually customize coverage for each transaction based on your client’s individual requirements. We want to ensure you have all the protection you and your clients need in one policy so you can close your deal with peace of mind.
In fact, we aim to offer our customers more than a policy: when you work with FCT you get more protection, more solutions and more experience.
† Coverage for title fraud occurring after the transaction closes is limited to $5 million and excludes vacant land.
*In 2018,”Real estate – commercial” accounted for the highest severity of reports by area of law.
In Fund Years 2013 to 2017, “Real Estate” resulted in the second highest distribution of Professional Liability Claims by Area of Law.
”Real Estate” accounted for the second highest distribution of claims by area of practice (% of gross claims costs)
Subject to certain exceptions, commercial title insurance policies equal or below $10M CAD are provided by FCT Insurance Company Ltd. Commercial title insurance policies above $10M CAD are provided by First American Title Insurance Company. Reference should be made to policy documents to confirm the insurer on any individual transaction. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.
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