How to File the Title Insurance Claim

Step-by-step guide for filing the claim with Austin Title. The claim letter is already written at title-claim.html.

Step 1: Find the Title Insurance Policy

Dorothy found the physical title insurance papers while organizing documents in summer 2022. Locate them and find:

• The policy number (needed for the claim letter)
• The underwriter's name (the national insurance company behind Austin Title — e.g., First American, Old Republic, Fidelity National, Stewart Title, etc.)
• The "Notice of Claim" section — this tells you exactly where to send claims and what timeline requirements apply

Step 2: Identify the Correct Claims Address

The claim may need to go to the underwriter's national claims department, which is a separate corporate entity from the local Austin Title branch at 3520 Bee Caves Rd. The policy itself will have the correct claims address.

If the policy doesn't have a clear claims address, call Austin Title at the Bee Caves Road office and ask: "Who is the underwriter on my owner's policy from April 2018, and what is the address for the claims department?"

Step 3: Prepare the Claim Package

Assemble these documents:

1. The claim letter — already written at title-claim.html. Print it, insert the policy number, and sign.
2. Copy of the title insurance policy
3. The incorrect deed (with the 2011 Olson survey attached)
4. The correct 2018 Garon survey and field notes
5. The Master Settlement Statement (showing the $2,000 credit for the 70x70 reservation)
6. The Access Easement Agreement (which correctly uses the Garon survey)
7. The Water Well Agreement (which correctly uses the Garon survey)
8. Photos of the fence Cindy erected on the 70x70 parcel
9. Receipts/documentation for the $20,000+ in infrastructure relocation costs
10. Correspondence with Austin Title where they said they "used the documents provided by the seller's attorney"

Step 4: Send Via Certified Mail

Certified mail with return receipt requested. This creates a legal paper trail proving they received the claim. Keep copies of everything you send, including the certified mail receipt number.

Also email a copy to the claims department email (if the policy provides one) and to walhus@gmail.com for your own records.

Step 5: Follow Up

• Request acknowledgment of receipt within 15 business days
• Request a preliminary determination within 60 days
• If no response within 30 days, call the claims department and reference your certified mail tracking number
• Keep a log of every communication (date, who you spoke to, what was said)

What to Expect

If the claim is accepted, the title company will typically:

1. Assign a claims adjuster who investigates the facts
2. Review the policy coverage to confirm the defect is covered
3. Attempt to cure the defect — in this case, by preparing and recording a Correction Affidavit or Material Correction Instrument under Texas Property Code §5.029
4. Pay covered damages — infrastructure relocation, attorney fees, increased costs
5. If they cannot cure the defect, they pay the policy limits (the amount of the Sales Price = $480,000)

The Legal Path: Texas Property Code §5.029

A Material Correction Instrument allows the original parties (Paul and Dorothy, as grantors) to correct the deed by replacing the Olson survey with the Garon survey. Key points:

• Must be executed by each party to the original recorded instrument
• Texas Supreme Court has ruled that only the original parties are required to sign
• Cindy's signature is not legally required (though recommended as best practice)
• Must be filed and recorded in Bastrop County
• Both Austin Title and the Bastrop County Mapping Division have confirmed this is the correct path

Optional: Attorney Review

Having a Texas real estate attorney review the claim letter before sending ($200-400 consultation) is recommended but not required. Attorneys previously considered:

• Jeff Kelly — Paul was preparing correspondence in Oct 2022
• Kemp Gorthey — Paul was preparing correspondence in Oct 2022

Paul's experience with attorneys so far has been costly and unproductive (Andrea Bleau: released for $5K; Joe Tuck: $773, no results). The title insurance claim is designed to be filed without an attorney, using the process outlined above.

Updated April 10, 2026 · Cindy Land Sale Directory · Financial Model · Hub