What is Title Insurance?
Title insurance protects the property owner in the event that someone asserts a covered claim against the property. When a lender is involved in the purchase or refinance of the property, a loan policy will also be issued protecting the lenders rights – up to the amount of the lender’s interest.
Title Insurance is issued after a careful examination of copies of the public records. Despite the knowledge and experience of professional title examiners, even the most thorough search cannot absolutely assure that no title hazards are present. Title Insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses.
A few common hidden risks that can cause a loss of title or create an encumbrance on title:
False impersonation of the true owner of the property
Forged deed, releases or wills
Instruments executed under invalid or expired power of attorney
Undisclosed or missing heirs
Mistakes in recording legal documents
Misinterpretation of wills
Deeds by persons of unsound mind
Deeds by minors
Deeds by persons supposedly single, but in fact are married
Liens for unpaid estate, inheritance, income or gift taxes