Real Estate Title E&O Coverage
Data Search provides Errors and Omissions (E&O) coverage for most of our title related products. The actual amount of coverage, if any, and coverage period is determined by the type of search that is ordered. If a report is "downgraded", then the coverage provided is that of the lesser report type. Covered reports include, Insured Standard Property Report, Insured Full Service Property Report, and Insured Title Search. This liability is extended to the "Client" identified on the actual report, binder and/or commitment and is conditioned upon their enforcing the promissory note and security instrument to the fullest extent provided by applicable law, and taking all reasonable steps to protect the interest they may acquire in the real property described in this report. Claims against our E&O policy can only be made when such loss is the direct result of the actual error or omission. Further, no claim can be filed if the client has or had prior knowledge of the error or omission and failed to disclose it to our office. We provide no coverage to the homeowner for an error or omission, unless Owner's Title Insurance was purchased. If an error or omission is discovered and no client loss is imminent, the claim will be denied. If the client or customer refinances the loan, any error or omission from the previous loan must be resolved at that time. We will not issue a Letter of Indemnity for an error or omission on any type of search.
Our report package is defined as the Title Binder, Title Report and/or Commitment when applicable. The actual number of pages that are included with the title package are clearly noted at the bottom of each page.
Standard Property Report: Maximum Liability $5,000.00
Full Service Property Report: Maximum Liability $25,000.00, if no loan, foreclosure or transfer occurs, $5,000.00
Title Search: Maximum Liability $25,000.00, if no loan, foreclosure, or transfer occurs, $5,000.00
When title insurance is purchased, maximum liability is that of the insured amount of the policy
The Maximum Liability for any covered report, when no loan, foreclosure or transfer takes place is $5,000.00.
Each Report Binder includes the Limitations and Liability as well as the coverage period for such an error or omission.
If a claim is filed, it must be in writing and accompanied by supporting documentation. Further, the client agrees to furnish us with any additional information from their files that we deem necessary to make an accurate and fair determination as to the damages and/or the validity of the claim. Failure to provide the appropriate supporting documentation at the time of filing could result in a denial for lack of evidence, and failure to provide such additional information could result in the forfeiture of coverage. We reserve the right to limit or remove coverage from any type of report for any reason with appropriate notice to the client. Any report marked as "Uninsured" or "Can not Insure" has no E&O coverage. Once a claim has been filed we reserve the right to take the time necessary to accurately and thoroughly investigate the claim. We do not commit to a specific time frame as not all cases are the same. We will continually follow up and keep the client informed throughout the process. It is our obligation to resolve any claim, quickly and professionally. We will provide in writing all of our findings and a final decision. If denied, the client has the right to appeal our decision if they have additional information not available at the time the claim was filed. If a claim is found to be justified, we will take the necessary steps to correct the error or omission using the most economical means possible.
No claim will be processed if the client does not suffer a loss that is the result of a foreclosure action. We reserve the right to deny any claim to a client whose account is currently 120 + delinquent.
