The Insured Must Provide a Proof of Loss for a Claim

Effective Date: 
Wednesday, June 20, 2012 - 3:05pm

Once a title company has admitted liability to an insured for a matter covered under the Owner’s Policy of Title Insurance (“policy”), the title company will commonly ask the insured for a proof of loss. Often times counsel for the insured claimant is surprised by the request for a proof of loss and does not know where to begin. 

The policy provision regarding a proof of loss is found as number four of the Conditions. It provides:    

"In the event ATG is unable to determine the amount of loss or damage, ATG may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss.  The proof of loss must describe the defect, lien, encumbrance, or other matter insured against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage."

The most common claims scenario where a proof of loss is requested from the insured claimant is where there is an easement that affects the insured land that was not excluded from coverage. Typically the type the proof of loss that is provided is an appraisal.   

Submitting a proof of loss does not automatically mean that the title company will then pay that amount for the claim. It is common for the title company to seek an opinion regarding the diminution of value from an independent third party, which is usually a different appraiser.  

In other situations, providing a proof of loss to the title company could be as simple as providing copies of receipts that reflect the loss the insured claimant suffered. That would be appropriate in the situation where the insured claimant had to pay past due real estate taxes.  

If you have any questions regarding title insurance claims, contact Christine Sparks,, 312.752.1408.

Posted on: Wed, 06/20/2012 - 3:06pm