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Will homeowners insurance cover a land dispute issue over an easement

Orting, WA |

I just heard that a friend is in a dispute over an easement with their neighbor and they said that their homeowners Insurance is taking care of the bill??? Really?? since when does homeowners Insurance cover Attorney fee's for a land/easement issues?? and if this is true......... What company is willing to cover these types of issues?? Never heard of such thing.... I don't believe it to be true...... must be some kind of Insurance Fraud by this person??

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Attorney answers 4

Posted

If there is an insurer involved, it is more likely a title insurance company.

Asker

Posted

Title insurance only comes in at time of sale in Wash......... there is a time limit and this person has been in the same place for 17 years. not sure what to think but I do know that the title Companies will not cover............ we tried that years ago when we had a easement issue......... they said no. only at time of sale if something is found to be wrong! Thanks for your reply!!

Posted

There wouldn't usually be insurance fraud if an insurance company agrees to cover a risk such an a dispute over an easement. It would have to be an unusual type of dispute for homeowners insurance to cover it. If the easement was not disclosed by the title company then it would be covered by title insurance.

Asker

Posted

Easement was disclosed by title Company. They would like to find out how HO or Title Company would play any kind of roll in such a dispute and if they are to be proven wrong, would they have to pay back the Money for their Defense? Their understanding was that title Insurance would only get involved if they didn't know about an easement. they were told title only gets involved if something pops up that your not aware of after purchase.

Posted

I agree with both previous answer and I have had several cases that homeowners insurance tenders a defense to a lawsuit and sometimes easments are involved. I always ask my clients to make a claim because sometimes an umbrella policy or homeowners policy will tender a defense and that can be a big help.
Good Luck

Only If and until you and I sign an Agreement for Legal Services, I am not your attorney. These answers are provided for informational and/or novelty purposes

Asker

Posted

Even if your found to be wrong? if the facts are proven and your wrong, do you have to pay the insurance company back?

Shawn B Alexander

Shawn B Alexander

Posted

Not usually, even when you were wrong or your employee or agent was the cause.

Posted

More facts would have to be shared to evaluate this question. Your homeowners insurance generally covers two things: property loss; and liability. If your friend is being sued by his neighbor for something to do with the easement, he may have coverage for his potential liability under his HO policy. Under that situation, the HO insurance company would step in and provide him with a defense. That typically includes hiring an investigator or an attorney to look into the facts. The costs of that are picked up by the insurance company. As I say, without more facts, it's hard to know how the insurance company got involved or what role they are playing.

Asker

Posted

What if he insurance company does get involved and your Found to be wrong? Do they have to pay it back? and how does title insurance play a roll if you knew about about the easement?

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