Request for Reimbursement

An advance decision was requested as to whether an employee could be reimbursed $332.16 which was allocable as the cost of an owner's title insurance policy procured by him when purchasing a residence incident to a transfer. The record indicated that the employee was required by the lender to purchase the mortgage title insurance, it did not indicate that an owner's title policy was similarly required for completion of the purchase. Therefore, the agency proposed to allow the amount allocable to the mortgage title policy, but not the amount for the owner's title policy. GAO agreed with the agency since the latter cost is specifically nonreimbursable with only limited exceptions not applicable here and since it was not necessary to the consummation of the transaction. Accordingly, the amount allocable to the owner's title policy was disallowed.