If title insurance companies work to eliminate risks and prevent loses caused by defects in the title before closing, why do you need a title insurance policy?
Even after the most careful research, some title flaws may go undetected. Among the more common flaws to title which are not of record are forgery, invalid court proceedings, mistaken legal interpretations, defective deeds, confusion due to similarity of names, previously unrecognized right of spouses and undisclosed heirs. These problems may surface at any time in the future. Protection against the flaws and other claims is provided by the title insurance policy which is issued after your transaction is complete. It agrees to assume the responsibility for legal defense of your title for any defect covered under the policy’s terms and to reimburse you for actual financial losses up to the policy limits.
Related Questions
- If title insurance companies work to eliminate risks and prevent loses caused by defects in the title before closing, why do you need a title insurance policy?
- Does the Fact That Title Insurance Companies Pay Out Very Little in Claims Indicate That it Is Overpriced?
- Can I receive additional income from the title company, lender, home warranties and insurance companies?
