Understanding title insurance.

Understanding the protection

What is title insurance?

Title insurance addresses certain risks affecting ownership of property. Stewart Title’s residential purchaser cover generally concerns unknown title-related problems, with some cover extending to specified risks arising after the policy date. It is different from building or contents insurance.

The premium is generally paid once at settlement, with cover continuing during ownership subject to the policy terms. Ask for a current quotation and the documents appropriate to your property: a residential strata policy differs from a residential purchaser policy.

Examples of risks to discuss

Depending on the policy and circumstances, covered risks may include certain title fraud or registration errors, specified encroachments and some local-authority enforcement relating to unapproved building work. These are examples, not a promise that a particular problem is insured.

For example, discovering an unapproved extension does not automatically mean its repair or approval costs will be paid. The event, loss, exclusions and applicable limits all need to satisfy the policy.

Source: Stewart Title key facts sheets and covered-risk guides.

Know the boundaries

What should you not assume is covered?

Title insurance is not a general building warranty. Physical defects, poor workmanship, wear and tear, and pest infestation are different from the title risks described in a policy. Cover connected to enforcement over building work has its own conditions.

Known but undisclosed problems, risks you create or agree to, and exceptions listed in your policy can affect cover. Tell the insurer about issues already identified and ask for its written position before relying on insurance. A general brochure cannot confirm cover for your property.

Continue with contract review, searches and appropriate building, pest and strata investigations. Insurance does not tell you whether a home is structurally sound, whether the owners corporation has adequate funds, or whether your proposed renovation is feasible.

Read the applicable Stewart Title exclusions guide alongside the full policy and schedule.

A considered decision

Questions to ask before buying a policy

1. Which policy applies? Confirm the property type, insured parties, insured amount and start date.
2. What have the investigations found? Give the insurer details of known title, boundary, approval or other issues.
3. What remains excluded? Request the schedule, exceptions, cover limits and any written decision about a disclosed issue.
4. What is the full cost? Obtain a current quote and confirm how and when the premium is paid.
5. What happens if something goes wrong? Understand the notification process and what needs approval before you incur costs.

How City Peak Conveyancing can help

We can discuss issues raised by your conveyancing documents and refer you to Stewart Title for its policy information. Ask the insurer to confirm eligibility and cover in writing. Your decision should reflect the property, the investigations already undertaken and your own circumstances.

If a problem arises

Making a title-insurance claim

Contact the insurer promptly using the instructions in your policy. Keep the policy, contract, correspondence and evidence of the issue. Check the insurer’s requirements before commissioning work, agreeing a settlement or incurring legal costs: consent and cooperation conditions may apply.

A claim is assessed against your actual policy. Neither this guide nor a referral from City Peak Conveyancing is a decision that a loss will be paid.

Source: Stewart Title’s Making a Claim guides.

Read the original documents

Stewart Title information & links

Choose the documents for your property and transaction. These links take you to the insurer’s website, where you can obtain its current information.

• Stewart Title Australia
• Key facts sheets — an overview of features and limits.
• Consumer guides — covered risks, exclusions and claims.
• Sample policies — read with your own policy schedule and exceptions.