Are insurers allowed to deny policies based on title research findings?

Insurers are allowed to deny policies based on title research findings because the title research plays a crucial role in assessing the risk associated with insuring a property. When title agents conduct thorough research, they investigate the history of the property, including existing claims, liens, and encumbrances. If any issues arise during this process, such as unresolved liens or unclear ownership, the insurer may determine that the risk of insuring the title is too high. Therefore, the findings from title research can legitimately impact an insurer's decision to issue a policy or not, as they reflect the potential for future claims or disputes over the property. This practice is essential for protecting the interests of both the insurer and the insured, ensuring that only properties with clear titles are insured.