What is title insurance?
Title insurance protects the new owner’s rights for the duration of ownership and guards against any possible losses due to problems such as forged wills or deeds undisclosed heirs; clerical error, invalid court proceedings, hidden marriages, divorces, defective deeds and other problems that cannot be determined from a search of the public records.
Title insurance is perhaps one of the most misunderstood of all types of insurance. While property and casualty types of insurance (homeowners, auto, life) insure you for things that may happen in the future, title insurance insures you of things that may have happened in the past. Title insurance guarantees the policy holder (you, the individual, or the lender who holds a mortgage on property) marketable title. In other words, if you have title insurance, you are insured that your property can be conveyed to another without defects or encumbrances.
