Title Insurance-What is it?

Of all the insurance products available to the consumer today title insurance may be one of the most unique and certainly one of the most necessary to property owners. Regardless of its necessity it remains widely misunderstood by most consumers. This guide is designed to answer some of the more common questions about title insurance.

What does Title Insurance do?

Basically, it protects the insured from losses as the result of claims on one's ownership of land. For instance, a seller may forge a signature of another, creating a loss for a new owner. Other problems that can occur include:

• fraud
• improper court proceedings
• recording mistakes
• missing heirs
• unfilled liens
• incompetency of previous seller(s)

Title Insurance can protect you from all of these and more!!!

What else do I get?

Probably one of the most comforting features of Title Insurance is the obligation of the insurer to defend you against claims of others. A neighbor may claim rights to a portion of your land. Without Title Insurance you would have to bear the cost of settling this dispute through the courts, regardless of the validity of the claim.

Are there different types of Title Insurance policies?

There are two basic forms of Title Insurance--an Owner's Policy and a Loan Policy. As the names indicate, the Owner's Policy covers the land owner and the Loan Policy covers the lender on a particular parcel of real estate.

If a loan policy is issued, why do I need an Owner's Policy?

A Loan Policy offers no protection to the land owner. A claim may arise that does not jeopardize the lender's interest, but may, in fact, cause a great loss to the owner. An example would be the one outlined earlier, when a neighbor claims rights in your land.

How long am I protected?

In a word...forever. You and your heirs are protected for as long as you or your heirs own the property.

How much does it cost?

Fees vary from state-to-state, but in all cases it is a one time cost that doesn't have to be renewed like other forms of insurance.

How long has Title Insurance been around?

The first Title Insurance Policy was issued in 1878 in Philadelphia, Pennsylvania.