Known Risk

Cover for Known Risks

Stewart Title may provide cover for certain known risks uncovered in the conveyancing transaction.


A ‘known risk’ is any matter which may be adverse to the purchaser’s interest and ownership of the property which is disclosed in the contract for sale or discovered during the course of the conveyancing transaction. This ability to insure against known risks presents a distinct benefit to purchasers as it offers an alternative solution when risks are uncovered.


Traditionally, the purchaser’s options in dealing with an adverse matter either discovered during the conveyancing transaction or disclosed in a contract for sale were limited to:


  • Not proceeding with the purchase
  • Rescinding the contract or seeking a reduction in the purchase price, or
  • Proceeding with the purchase and accepting the risk


Title insurance now provides purchasers with another option.


The decision to cover known risks is made by Stewart Title on a case-by-case basis. Where cover is provided, there is no additional premium.


Known risk cover is not available in relation to:


  • Unapproved or non-compliant swimming pools and spas (including safety barriers)
  • Unapproved or non-compliant granny flats/dual occupancies or unapproved structures which are known to have building code defects, structural defects or poor workmanship
  • Unapproved or non-compliant retaining walls
  • Any unapproved building work where the Local Authority has been notified of the unapproved building works or is otherwise aware of the existence of the unapproved building works
  • Any encroachments upon the property which is to be insured or encroachments on adjoining property where the owners of the adjoin property are aware of the existence of the encroachments


If risks are discovered in the transaction, we encourage you to contact our Underwriting Department on 1800 300 440 to determine whether Stewart Title can help you settle your transaction with peace of mind.


Duty of Disclosure

Before you enter into a contract of general insurance with an insurer, you have a duty, under the Insurance Contracts Act 1984, to disclose to the insurer every matter that you know, or could reasonably be expected to know, which is relevant to the insurer’s decision whether to accept the risk of the insurance and, if so, on what terms.


Click here to learn more about Duty of Disclosure.



Please note that the information on title insurance provided is solely for general information purposes only and does not relate to your personal circumstances. It is not intended to be a complete description of all the terms, conditions and exclusions applicable to the title insurance product.  Please refer to your issued policy for full details, including the specific terms and conditions, exclusions and other limits on coverage. Sample policies are available here or upon request.