Claim Story – Insured was exposed to risk due to inaccurate search results


An Insured purchased a commercial property formerly used as a theatre. At the time of purchase, the property was in violation of fire codes. Insured purchased the property knowing about this issue and that he would be responsible for correcting it. Chicago Title issued an owner’s policy noting the issues on schedule along with our standard with a Government Response Endorsement. Post-closing during an inspection, the inspector found several new violations. The insured did not know about these violations when he bought the property and that left the insured exposed to risk!

Chicago Title accepted the insured’s claim who was exposed to risk

Since the new violations were not mentioned in the earlier notice that was available before the sale, Chicago Title accepted the claim under the Government Response Endorsement. We reimbursed the insured for the cost of remedying the new violations. The story would have been very different if the insured had purchased a GAP-only policy, leaving him exposed to risk. Gap coverage ends when the title is registered, and any issues like inaccurate search results that arise after the registration are not covered, but with Chicago Title’s title insurance policy, your clients get full coverage!

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