What is Title Insurance?

A Title Insurance Policy protects a property from past events which may or may not be a part of the public records, but that can adversely affect a new owner's interest in the property being sold to them. Title Insurance protects against matters of public record, plus hidden title defects, such as fraud, forgery, incompetence or missing heirs, unrecorded easements, invalid deeds or documents that even the most diligent title search may not discover. These title defects can arise after you've purchased your home and can jeopardize your right to ownership.

What is a Loan Policy?

A Loan Policy is required to protect your lender's security interest against loss due to undiscovered defects on your title resulting from claims by others against your new home. A loan policy does not protect the homeowner.

What is an Owner's Policy?

Owner's Policy insurance protects the equity in your home and is usually issued in the amount of the real estate purchase. It is purchased for a low one-time premium at closing and lasts as long as you or your heirs have an interest in the property. This may even be after the insured has sold the property. Only Owner's Title insurance fully protects the buyer should a problem arise with the title that was not uncovered during the title search. Owner's Title insurance also pays for any legal fees involved in defending a claim to your title.

What are some of the most common title claims made?

  • False impersonation of the true owner of the property.
  • Forged deeds, releases, or wills.
  • Undisclosed or missing heirs.
  • Contracts executed under invalid or expired power of attorney.
  • Mistakes in recording legal documents.
  • Misinterpretation of wills.
  • Deeds by minors or persons of unsound mind.
  • Deeds by persons who have misrepresented their marital status.
  • Liens for unpaid estate, inheritance, income, or gift taxes.