What is Title Insurance
What is Title Insurance?
Title insurance is an insurance policy that protects the insured against financial loss from defects in a property’s title or ownership. Title insurance is unlike most other types of insurance policies that many people are used to. When most people think about insurance they are thinking about protection against future risks or events like with auto or health insurance. However, title insurance protects an insured against past events.
A few examples of what Title Insurance covers:
Unknown liens or judgements
Unpaid taxes, contractor bills, mortgage liens, medical bills, homeowner’s association liens
Indexing errors in the public records
Misfiled documents, clerical mistakes
Invalid documents
Forgery, fraud against the rightful owner, stolen identity, signature given under duress, signature by someone legally incompetent to sign or someone claiming to be someone else.
Missing heirs
Disputes over ownership
Gaps in the chain of title
Mistakes made during examination of records
