My question involves real estate located in the State of: California
The two lots behind our house (and our neighbor's house) were bought last year, and the new owners are building a house. They informed our next-door neighbors and us that our sewer and water lines were located on their property--something we were unaware of when we bought our house. They are asking us to move the lines. Our next door neighbor got his title company to pay for the relocation, but ours refused, saying that "if the description of the land set forth in the policy does not include an easement, then that easement is not insured by our policy". Our next-door neighbors ended up moving their lines, and selling their house, in part, they said, because their interactions with the new neighbors (the ones that are building a house) were so nasty and negative! Very sadly, we were unable to get advice from them because the (young) husband died in a freak accident several months ago.
We tried to see if our homeowner's insurance policy would cover moving the lines, but were told they would pay for replacement of the lines should they get damaged while the new house is being constructed (after $1000 deductible). We also contacted the California Department of Insurance, but it seems they have no teeth, because we got a second refusal letter from the title company after the Cal. Dept. of Insurance contacted them.
How could it be that our neighbor's title company paid for the relocation, but ours won't? We of course WANT our lines to be relocated, but we will have to take out a loan to pay for it. We wonder why we have insurance if it won't pay for such things?
Now the new neighbors are sending nasty e-mails to us, basically implying that they are going to dig back there and won't be responsible for the damage. We told them we are still trying to get it paid for, but I guess they are trying to get us to move on it.
Should we pay for a lawyer, and try to sue the title company, or see what our options are?