Title Insurance

Protection from Past Claims and Disputes
Title insurance is unique in that it protects you from the past, rather than from some future event as does all other insurance. Even though a seller provides you with a General Warranty Deed, title insurance is still highly recommended. The lender will require you to have a lender’s title policy that protects the lender’s interest in the property. For just slightly more cost, you can also receive an owner’s title policy to protect your own interest. The owner’s policy protects you against loss from forged documents, undisclosed heirs, misfiled documents, erroneous interpretation of wills and so forth. The title insurance company will defend your rights in court and reimburse you for the cost of the property if a prior claim is found to be valid.

Example of Title Insurance Protection
Consider the following example: Fifteen years ago when a property was passed on to the current sellers, the woman who signed off on the deed was not actually the wife of the owner. Now, the wife is making a claim on the property. If her claim is found to be valid, the lender’s title policy will pay off the home loan balance. The owner’s title policy will protect your investment.