Title insurance is a form of indemnity insurance found in the United States. It protects the policyholder against financial loss due to defects in title to real property.  It also protects the policyholder from the invalidity of mortgage loans. The reasons listed below will explain why you should have title insurance.

• The mortgage or deed in the chain of title could be a forgery
• The title is subject to a federal estate tax lien due to being transferred by an heir
• There is a defect in the document which your title is dependent
• The mortgage or deed was made by an incompetent person
• The mortgage or deed was made by someone with the same name as the owner but is not actually the owner
• The mortgage or deed was created by someone who was intending to do fraud
• A levy or judgment that the title is dependent is voidable or void due to a defect in the proceeding
• Title insurance can speed the process of obtaining a loan or selling the property
• Title insurance gives you protection by reimbursing you for the amount of your covered losses
• The mortgage or deed belonging to the property was signed by an underage person
• The mortgage or deed is void due to it being made by a power of attorney after its termination
• A child was born after the execution of a will which entitles them to the opportunity to claim their share of the property
• A person or heir presumed to be dead appears out of nowhere to recover the interest and the property
• Title insurance covers court costs and attorneys’ fees
• Ensuring the title allows you to eliminate technicalities or delays when transferring the title to someone else
• The mortgage or deed was signed while the grantor was in bankruptcy and is now voidable

As you can see title insurance is in the best interest of property owners. It helps protect your ownership rights against a wide range of claims. An important benefit of an owner’s policy is that it remains effective for as long as you or your heirs maintain the property.

You will notice that lenders generally require you to obtain a lender’s title policy. This type of policy protects the amount the lender provides. As an owner, you are encouraged to purchase your own title insurance policy which can be purchased separately from your mortgage.

Protect yourself with title insurance. Make an appointment today to get started!