The policy in action
“Known risks” are risks or issues that are known about by an insured prior to entering a transaction. These issues may have been disclosed by a seller or independently identified by a buyer or its advisers. Cover for such issues is provided on an affirmative basis and protects against loss or damage where the risk materialises (typically when a third party commences enforcement action in relation to the insured issue or defect). “Unknown risks”, as the name suggests, are matters that weren’t discovered during the due diligence/pre-acquisition phase. Cover for unknown risks is provided by way of a standard list of title related insured events.
The examples and indicative premiums referred to below are case specific and reflect the particular facts, risk profile, and commercial context of each transaction. They are included to illustrate how cover can be structured and priced in practice. Cover may not be available for all risks or transactions. Outcomes including availability, scope of cover and premium will vary depending on the circumstances assessed.
Known Risk Policy: Missing Planning Documentation
Background
A private equity investor was looking to acquire a portfolio of warehouses. Due to missing and incomplete planning documentation, the buyer’s lawyers could not verify that the correct planning consents existed for the existing use at one of the properties. Consequently, use of that property was potentially unlawful and may be subject to enforcement action by the local authority.
Outcome
DUAL issued a policy that provides protection against enforcement action from the local authority on grounds that the use was not properly authorised.
Insured ValueA$ 55,000,000 |
Premium A$ 61,500 |
Unknown Risk Policy: Distressed Sale
Background
A private investor was seeking to acquire a small warehouse for their self-managed superannuation fund. The property was being acquired from receivers, as the previous owner had gone into administration.
Challenges
• A compressed sales process with multiple interested purchasers meant there was significant time pressure.
• Lack of representations and warranties from receivers
• Full due diligence was costly and not feasible considering the time constraints.
Why title insurance?
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• Can act as a warranty replacement tool. |
• Provided a cost-effective option compared to a full DD process. • Assisted in expediting the transaction. |
Known Risk Policy: Encroachment / Adverse Possession
Background
A real estate fund was acquiring a portfolio of properties. Prior to signing the contract, the seller disclosed the presence of an unregistered strip of land enclosed within the physical boundaries of one of the properties (Subject Land). The Subject Land had been built over, and it was not clear who the true legal owner of the Subject Land was.
A policy was required to cover the potential risk of the true legal owner of the Subject Land coming forward after completion and asserting its ownership rights.
Outcome
DUAL issued a policy providing protection for the insured against any third-party claiming ownership of the Subject Land and/or seeking demolition of that part of the building built over the Subject Land.
Insured ValueA$ 123,000,000 |
Premium A$ 286,000 |
Unknown Risk Policy: Standard purchase with affirmative cover
Background
A property investor in Tasmania was looking to acquire a commercial office with the benefit of an existing tenancy agreement.
Challenge
The buyer was risk averse and seeking general protection for certain title matters that could impact the ownership and/or use of the property. In addition to this, during due diligence, the insured’s lawyers could not conclusively verify that the use of the property was lawful, so sought affirmative cover for this point.
Why title insurance?
In this scenario, DUAL was able to include affirmative cover for the use of the property not being lawful. In addition, key coverage elements that applied under our general ‘unknown matters’ insured events included (among other coverages):
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• Property ownership not being as warranted |
• Breaches of restrictive covenants • Lack of easements for the existing use |
Insured ValueA$ 1,700,000 |
Premium A$ 3,060 |
Unknown Risk Policy: Title to Securities
It is not just real estate we cover; we can also insure risks affecting the ownership of shares in a company, units in a unit trust or other similar equity interests (which we collectively refer to as 'Securities'). Cover is provided under our ‘Title to Securities’ (TTS) Policy.
Below is a recent case study where our TTS Policy assisted with a transaction where full due diligence was not feasible.
Background
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a. 25+ sellers consisting of founders, trusts, superannuation funds and individual sellers b. A target group that included a large number of entities c. Limited seller due diligence was carried out d. W&I limit was being preserved for non-title related matters, and title cover was needed up to 100% of the EV |
A TTS Policy helped the buyer obtain comfort that it was protected against title and capacity related issues.
EV:A$ 105,000,000 (approx.)
De-Minims:NIL |
Insured Limit: A$ 105,000,000 (approx.)
Excess:NIL
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Claims corner
Below are recent examples of how our policies respond at claim time, demonstrating the practical value of taking out title insurance.
Known Risk Policy: Lack of an Easement
Background
The insured had purchased a plot of regional land that had the benefit of development consent. Access to the development site required contractors to traverse a portion of land owned by neighbours.
During development, the neighbours raised a claim seeking to prevent access after contractors caused parking issues in the surrounding area, as well as leaving debris all over the road.
Outcome
In this matter, DUAL engaged with the neighbours and a settlement was reached. An easement was granted in exchange for the developer agreeing to (i) repair any damage caused to the road and (ii) to contribute to a sinking fund for ongoing repair and maintenance of the road.
The settlement costs were covered but the repair costs and sinking fund contribution fell outside the scope of the policy. DUAL also covered legal fees incurred in preparing the deed of easement and the settlement deed.
Settlement CostA$ 114,000 Total Incurred Loss A$ 116,000 |
Insured's Legal Fees A$ 2,000 ExcessNIL |
Unknown Risk Policy: Standard Purchase
Background
The insured acquired land for commercial use. Several years after acquiring the property, a neighbouring owner came forward and claimed to have a longstanding right of way across the property. Prior correspondence relating to this issue had taken place before completion, but was not disclosed by the seller. The land in question was required for storage purposes, and the alleged right (if exercised) would limit the insured’s full use of the property.
Outcome
Coverage assessment is ongoing, with any policy response dependent on whether a genuine third-party right can be established. If so, DUAL will first look to negotiate a release of the easement. Failing that, loss in value of the property will be covered in accordance with the policy.
*Please note that certain financial details have been varied to remove identifying features and, where relevant, have been converted to AUD (correct as at 02 April 2026). DUAL’s Title Insurance team operate across APAC, the UK and Europe and the policy and claims examples in this document draws from our global experience.
DUAL does not accept any liability arising out of any reliance on this information. The claim scenarios contained in this fact sheet is meant as a guide only. The content in this document is information only, it is not financial advice. It does not take into account any person’s own objectives, financial situation or needs. The product information included in this document is only intended to be a summary of the highlights of the cover available. We encourage you to read the full policy wording for a full description of the terms and conditions and to obtain financial advice from your broker prior to purchasing the product.
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The information contained in this blog is intended for licensed insurance brokers and other authorised intermediaries only. DUAL issues insurances on behalf of Certain Underwriters at Lloyd’s of London and/or Allianz Australia Insurance Limited, acting as their agent. The information is of a general nature and does not take into account the objectives, financial situation or needs of any person. It is intended for the use of professional intermediaries who are expected to consider whether it is appropriate for their clients. Before recommending or offering any insurance product, intermediaries should read the policy wording, relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD) and assess whether the product is suitable for their client’s circumstances. These are available on request or via our website at DUAL Australia.