Title Insurance protects the insured person/people from a financial loss associated with the ownership of a property.  When in the process of buying a home, a title company checks the property’s ownership history, to make sure you are receiving a clear title to the home with no legal claims or liens. In the case that a yet-to-be-discovered issue comes up down the line with the home’s title, the insured would then use their title insurance to protect against their personal liability.

While people are familiar with the idea of automobile insurance, which covers events that have not yet happened, title insurance covers events that previously took place.  In the case that unpaid taxes from 30 years ago by a previous owner, or a lawsuit from an heir to someone who previously owned the property comes up, title insurance will cover it. While searches are done by title companies as to the titles history can minimize the risks of a claim being made, they do not guarantee a title issue will never arise. Title Insurance helps to ensure the risk of this happening for a relatively low, one-time fee.

All types of issues can come up in relation to a property title. Things like deeds, wills, and trusts can be improperly handled. Outstanding mortgages, judgments, tax liens and even easements can be overlooked or incorrectly documented. While a title search should show these issues, it does not mean they were not documented incorrectly and won’t show up in a search. With title insurance, you will have the peace of mind to never have to worry if they do.

These are just a few of the issues that can arise when it comes to a property’s title and why it is so important for a home-purchaser to opt-in for title insurance. The only way to ensure you are protected from any issues that would make your home title no longer clear is to purchase title insurance. Title insurance removes your own liability and takes on the risk for you, it ensures that even if there is some type of claim against your property title in the future, you will not be held personally responsible for it. Not only does this help you in the short term but if 20 years from now there is a claim against your property for something that took place before you purchased it, it will still be covered.