How Title Insurance Protects Against Encroachments

6 September 2025

Buying a home is probably one of the biggest investments you'll ever make. But what if, after closing the deal, you find out that part of your property is actually sitting on your neighbor’s land—or worse, someone else’s structure encroaches on yours? That’s where title insurance steps in as your silent protector.

Encroachments can be a real nightmare. They can lead to legal disputes, unexpected expenses, and, in the worst cases, even the loss of a part of your property. Title insurance helps prevent these issues before they become major headaches. But how exactly does it work? Let’s dive in and uncover how title insurance protects against encroachments.

What Exactly Is Title Insurance?

Before we jump into encroachments, let’s quickly break down title insurance.

When you buy a property, you’re not just purchasing the physical land and structures—you’re also buying the legal rights to that property. But what if there’s a hidden issue with these rights, such as an undisclosed lien, an ownership dispute, or a boundary problem? That’s where title insurance comes into play.

Unlike homeowner’s insurance, which protects you from future events (like fire or theft), title insurance protects you from past issues related to the property title. It ensures that your ownership is legally sound and free of hidden claims.

What Are Encroachments?

Encroachments happen when a structure (like a fence, shed, driveway, or even part of a house) extends beyond the property line onto someone else’s land.

They can be:

- Minor – A simple fence slightly crosses the boundary.
- Major – A neighbor’s garage extends onto your land.
- Accidental – A homeowner unintentionally builds over the property line.
- Intentional – Someone knowingly invades your space, hoping it’ll go unnoticed.

Regardless of how or why it happens, encroachments cause problems. They can make it difficult to sell your property, reduce its value, or even result in costly legal fights.

How Title Insurance Protects Against Encroachments

Now that we know what encroachments are, let’s get to the good part—how title insurance protects you from these issues.

1. Uncovers Existing Encroachments Before You Buy

One of the first things a title insurance company does is conduct a thorough title search. This involves:

- Reviewing historical records
- Examining previous surveys
- Checking for boundary disputes

If an encroachment is found before closing, you can negotiate a solution, ask the seller to fix it, or reconsider your purchase. This prevents nasty surprises down the road.

2. Covers Legal Costs If You Face a Dispute

Imagine you move in, and your neighbor suddenly claims part of your backyard as their own. Without title insurance, you’d be footing the bill for legal fees, surveys, and possibly even court battles.

With title insurance, your insurer covers the legal costs, ensuring you don’t have to drain your savings over a property fight.

3. Provides Compensation for Losses

If a court rules that part of your property actually belongs to someone else due to an encroachment issue, title insurance compensates you for the lost value. This can be a lifesaver, especially if the encroachment affects a key section of your property, like your driveway or backyard.

4. Protects Against Future Legal Claims

Not all encroachments are obvious at first glance. Sometimes, issues arise years after purchase when a neighbor decides to claim part of your land.

Title insurance ensures that even if an encroachment dispute pops up long after you’ve moved in, you’re still protected.

Real-Life Scenarios Where Title Insurance Saves the Day

To truly understand the importance of title insurance, let’s look at some real-world situations:

Case 1: The Mysterious Fence Dispute

A couple purchased a charming suburban home, only to later discover that their neighbor claimed part of their yard. The reason? A misplaced fence built decades earlier. The couple now faced an expensive legal battle.

Luckily, their title insurance kicked in, covering legal costs and helping them reach a fair settlement without spending a fortune.

Case 2: The Hidden Driveway Encroachment

A new homeowner realized that a portion of their driveway actually extended onto a neighboring lot. The neighbor insisted they either remove it or pay for the land.

Since the encroachment wasn’t disclosed before closing, their title insurance provider stepped in to resolve the issue, covering expenses and ensuring the owner didn’t lose access to their own driveway.

Case 3: Inherited Boundary Disputes

A man inherited a home from his parents, only to later learn that a neighbor had slowly expanded their fence several feet into his property over the past 20 years.

Without clear records, the issue became a legal nightmare. Thankfully, his title insurance policy covered the legal fees, saving him thousands.

What Isn’t Covered by Title Insurance?

While title insurance is an essential safeguard, it’s important to understand its limitations. It typically does NOT cover:

- New encroachments made after you buy the property.
- Problems not found in public records (unless covered under your policy).
- Zoning violations or land use issues.
- Boundary disagreements that arise from new surveys conducted after purchase.

That’s why regular property inspections and boundary checks are still essential, even with title insurance.

How to Prevent Encroachment Issues Before Buying

While title insurance is a critical safety net, being proactive can help you avoid trouble altogether. Here are a few smart steps:

✅ Get a Professional Land Survey

A land survey clearly defines property boundaries and helps identify potential encroachments before you close the deal.

✅ Review the Title Report Thoroughly

If any red flags show up in the report, take them seriously. Ask questions, consult with a real estate attorney, and ensure issues are resolved before purchasing.

✅ Talk to the Neighbors

Sometimes, neighbors are aware of long-standing boundary disagreements. A quick chat could reveal potential concerns before they turn into legal problems.

✅ Check for Existing Easements

Easements allow others (like utility companies) to use a portion of your land. Make sure these are clearly documented and don’t impact your intended use of the property.

Conclusion

Encroachments might seem like small inconveniences, but they can quickly spiral into costly legal battles and even impact the value of your property. Thankfully, title insurance serves as a protective shield, safeguarding your investment from undisclosed property boundary issues.

Whether it’s uncovering existing encroachments before closing, covering legal disputes, or compensating for losses, title insurance acts as an essential safety net for homeowners.

So, before you sign on the dotted line for your next home, make sure title insurance is part of your plan—it could save you a whole lot of trouble (and cash) in the long run!