Partners, and spouses, can lose title insurance if they transfer title out of their names or the entity in which they took title without first obtaining the proper title insurance Endorsement.  The most common endorsement is called a Residence Held in Trust Endorsement (HO 05 43)  If the transferor signs a grant deed, he is deemed to make the covenants described in Civ. Code § 1113, “and none other.” Id. If the person who signs a grant deed breaches any of the covenants set forth in the statute, he is not going to have any title insurance coverage, because title insurance does not protect the insured against his own acts.

Recently-issued title insurance policies, may provide coverage even though the insured transfers his interest into a revocable trust.   But be safe, ask for a trust endorsement.

Title Insurance Issues
 Need an endorsement for successors and transferees, e.g. successor trustee coverage. Obtain an endorsement on your title insurance policy;
 Obtain endorsement form CLTA 107.9 for transfer to revocable trusts or HO 05 43
 Obtain expanded coverage on your title insurance policy to include coverage for trustees and successor trustees; or
 Obtain a new CLTA/ALTA Homeowner’s Policy of Title Insurance from 1998 to present.

See also Kwok v. Transnation Title Ins. Co. (2009) 170 Cal.App.4th 1562
This California Court of Appeals case involved a transfer of title of real property by use of a grant deed. A grant deed “grants” or “conveys” title to real property from the grantor to the grantee. This is also the mechanism for funding revocable trusts established through Trust Agreements under California Probate Code §15200(b). In the Kwok v. Transnation Title Ins. Co. case, several individuals owned a limited liability company (LLC), and the LLC was the owner on title of a parcel of real property. The LLC (through it owners) transferred the LLC’s interest in the real property to the revocable trusts of the owners of the LLC. The court held that this transfer constituted a voluntary act not covered by their title insurance contracts, which consequently terminated their title insurance coverage. After Kwok, voluntary transfers of real property to a revocable trust may terminate title insurance for the real property under the terms of some title insurance policy provisions.