Can a title insurance company deny a fraud-related claim?

Title insurance companies sometimes deny claims arising from forgery or fraud, but California law generally requires title insurance to cover losses from forged instruments and identity fraud. A wrongful denial can be challenged through bad-faith litigation.

What is the statute of limitations for a bad-faith insurance claim in California?

California's statute of limitations for bad-faith insurance claims is generally two years from the date the insurer breached its duty of good faith and fair dealing, though specific facts can affect the analysis.

What damages are recoverable in a bad-faith title insurance case?

A successful plaintiff can recover policy benefits, consequential damages, attorneys' fees under Brandt v. Superior Court, emotional distress damages, and — in cases of egregious conduct — punitive damages under Civil Code §3294.

How long does title insurance litigation typically take in California?

Complex title insurance disputes generally take 12 to 24 months. The case described here resolved after more than a year of litigation when the firm established the lender was one of the victims of fraud.

CASE RESULTS

Title Insurance Claim $1.25M Settlement

$1.25M

$1.25M settlement

View results

case

Title Insurance Claim $1.25M Settlement

$1.25M settlement

Khashayar Law Group, San Diego real estate and insurance litigation attorneys, recovered $1.25 million in title insurance coverage for a lender victimized by Orange County real estate fraud — after the insurance company initially denied the claim. This case highlights our firm's depth in title insurance disputes, real estate fraud litigation, and bad-faith insurance claims in San Diego and California.

Our client provided funds as a lender to a person who forged documents purporting to be the owner of a home in Orange County. Once we discovered the transaction was fraudulent, we made a title insurance claim on our client's behalf, and the title insurance company denied coverage. After more than a year of litigation, we established that our client was one of the victims of the fraud and recovered the full amount of his coverage — $1.25 million.

Khashayar Law Group represents San Diego and California clients in real estate fraud, title insurance disputes, bad-faith insurance claims, and complex business litigation. If your title insurance claim has been wrongfully denied or you've been victimized by real estate fraud, contact our San Diego attorneys for a free consultation.

Source note. This is a firm-reported settlement. Settlement details may be confidential, and not every settlement has a public case number or public verdict report.

Past-results disclaimer. Past results do not guarantee or predict future outcomes. Every case depends on its facts, evidence, defendants, insurance coverage, venue, applicable law, and litigation strategy.

The results described are not a guarantee, warranty, or prediction regarding the outcome of your legal matter. Every case is unique and must be evaluated on its own merits.