Negotiating a Title Insurance Policy
While the title policy price may not be negotiable in New Jersey, there is more negotiation of the terms of the policy happening than one might think at first blush. The first step is to understand the parts of the contract that can be negotiated. Title insurance is a contract of indemnity. It is not a guarantee as to the condition of title. As with other insurance, the general concept is that there must be a loss experienced for there to be coverage. In additional, title insurance covers defense costs for the covered risks not excepted or excluded. The title insurance documents contain two main sections – standard terms contained on the pre-printed Commitment Cover Letter and the Policy Jacket and the transaction specific details on the Commitment and Policy Schedules. Standard terms can be negotiated utilizing select Endorsements. Transaction specific insurance can be negotiated through requests for Amendment to the title Commitment Exceptions and Requirements.