The Importance of Title Insurance


A deed in itself does not cancel certain prior rights and claims other people may have to your property – rights whose existence you never suspected, claims that may go back in time months or decades to the earliest owners of your newly acquired property. A forgery 50 years ago, a deed executed under duress, bigamy that went unknown, an error by a clerk in the county recorder’s office, a misapplied tax payment … these are but a few of the hidden title defects that could cause you to lose your property. And, even if you don’t lose your property altogether, you don’t want to pay the cost of defending your property rights in court. A title insurance policy is your best protection against potential defects, which could remain hidden despite the most thorough search of public records. For a one-time premium, your title insurance agrees to reimburse you for loss suffered due to defects that existed prior to the issue date of your policy, up to the amount of the policy. Unless specifically excluded, your title insurance policy also provides for legal defense costs. Among the many risks against which title insurance protects you are:
  • confusion from similarity of names,
  • forged documents,
  • signatures of minors or mentally incompetent persons,
  • mistakes in recording legal documents,
  • undisclosed or missing heirs,
  • fraud,
  • invalid divorces,
  • misrepresentation of marital status,
  • unpaid taxes,
  • clerical errors in public records, and
  • wills not probated
A low, one-time premium is all you pay to obtain the protection and peace of mind of a title insurance policy. So long as ownership remains in your name or that of your heirs, there is no additional cost.

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