Tait v. Commonwealth Land Title Ins. Co. (2024) 103 Cal.App.5th 271 The measure of damages against a title insurer for an owner’s actual loss when there is a cloud on title is measured by the diminution in market value caused by the existence of the cloud. Actual loss is determined by the property’s highest and best use (as determined by eminent domain law), not by its current use if less. Highest and best use includes currently unpermitted uses if it is reasonably probable that the zoning authority would approve a waiver of existing use restrictions.