Although rare, property claims do arise. Even if you were looking for a title over the trust deed before buying a property, it's possible that something was missed and someone is using your property.

For example, if the previous owner had given verbal permission to his neighbor to use part of the property for a particular use. Unless documented and submitted, it is unlikely that such an agreement will be reached when seeking titles.

This is how property insurance works

How Property Insurance Can Protect You From Losses

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Property insurance protects you from legal flaws. This deficiency occurs before the date your policy was issued and before taking ownership of the property. Real estate agents study property history to identify and correct any deficiencies in property rights before issuing a policy.

So what do you do if someone files a lawsuit against your property?

Check your guidelines

The first thing you need to do is check your insurance policy to see if it is specifically excluded from claim or use. This particular user may have been listed as an exception and you have forgotten about it.

If the claim isn't listed as an exception, you may have a lawsuit and may need to contact your real estate agent.

Contact your agency

Their policy contains specific instructions on how to contact the agency if there is a claim. It is in your best interest to follow these instructions carefully. This usually requires submitting written documents and proof of damage or loss.