In my particular case I believed I had an easement. Fidelity confirmed they had made a mistake and there was no easement and opened a claim. They valued the loss of the easement at $0 using an appraiser from a different state. BUT apparently in the middle of the four year claim they discovered that the easement was valid (and did not tell me) and made no attempt to defend the easement. Of course, I did not discover this fact until another two years later during discovery and by that time we were 24 hours away from the Settlement Conference and I no longer owned the property.
But what happens in the case that Fidelity makes an error and you need to go to court to retain your property rights against your neighbor??
From the Fidelity National Title website:
If a claim is made against your insured title, Fidelity National Title Insurance Company protects you by: (1) Defending your title, in court if necessary, at no cost to you, and (2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property."
However, what had become apparent in the process was that the title company was not acting in good faith for the responsibility of their error. But instead proceeded with action to legally eliminate their responsibility of the error by hiring an attorney to manipulate an outcome so that the title company would have little to no responsibility. After this was accomplished the title company then discontinued coverage and representation of the insured.
Even though this was "successfully" accomplished by the title company and their hired outside council. The title company remains accountable for the original error no matter what course of action the company took to minimize the damage of the original error made by the title company.
The insured continued to pursue the original issue with the title company and he received another letter. Only this time, from an "outside attorney" hired on "behalf" of the title company. This attorney actually had the audacity to issue a cease and desist notice on behalf of the title company."