Title Insurance - Real or a Myth?

The purchase of a home is one of the most expensive and important purchases you will ever make. You and your mortgage lender will want to make sure the property is indeed yours and that no one else has any lien, claim or encumbrance on your property.

Title insurers work to identify and eliminate risk before issuing a title insurance policy. Title insurance will indemnify a property against loss under the terms of your policy. Title companies work in advance of issuing your policy to identify and eliminate potential risks and therefore prevent losses caused by title defects that may have been created in the past.

Buyers and lenders in real estate transactions need title insurance. Both want to know that the property they are involved with is insured against certain title defects. These defects could be liens, lot line adjustments or a person could claim ownership that they have a lien across your land etc.

In essence, by acquiring your policy, you derive the important knowledge that recorded matters have been searched and examined so that title insurance covering your property can be issued. Because a title policy is a risk eliminator, the probability of exercising your right to make a claim is very low.