What is title insurance?
Title insurance protects against loss which may occur due to events that happened in the past, including unreported land title defects, forgeries, claims by missing heirs, recording errors, easements and deed restrictions previously placed on the property. For the cost of a single, one-time premium, title insurance protects the property owner against loss resulting from any title defects covered in the policy for as long as the property is owned.
A. Title insurance protects the legal owner’s rights if a question of ownership/marketable title should arise. The insurer pays all legal expenses to defend you against problems such as mistakes in the recording of legal documents, forgery, fraud, undisclosed heirs, and deeds that were executed by unauthorized persons, including minors, persons of unsound mind and persons in possession of an expired or invalid power of attorney.
You’re probably quite familiar with other types of insurance. And you undoubtedly have insurance that covers your car, medical bills, and your life. Title insurance is one type of insurance that millions of home owners have, but few know why they have it, or for that matter, what it is. When you buy a piece of real estate, whether it’s a home, condo, or a piece of land, you must have a complete investigation of the property. This includes the title of the property. Sometimes, unfortunately, some points are missed during the investigation of the title due to clerical errors or misrepresentation from previous owners. You could one day find out that the property that you bought and paid for is not actually yours at all! That’s where title insurance comes in. It was Will Rogers who once said, “Buy land, ‘cause they ain’t makin’ any more of it.” This is a fantastic way to understand how valuable real estate is. Because of its value, special laws have been created for its protection. Some of
Insurance that protects you against loss should the condition of title to the land be other than as insured; title insurance offers protection against past occurrences which could result in a claim at a future date. If a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage continues to protect your security interest in the property. Coverage continues as long as you have an interest in the covered property. If you should die, the coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues.
