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Title insurance is a unique type of insurance that protects homebuyers and lenders from financial loss sustained from defects in a title to a property.

Unlike traditional insurance (like auto or homeowners insurance) which protects you against future mishaps, title insurance protects you against past events that occurred before you bought the property.

How It Works

Before a real estate closing, a title company will conduct a title search through public records to ensure the seller actually has the right to sell the property and that there are no "clouds" on the title.

However, even the most thorough searches can miss hidden defects. Title insurance is there to cover you if someone comes forward later claiming they have a legal right to your property.

Common Defects Covered

• Forgeries or Fraud: Someone forged signatures on a past deed to sell the property illegally.

• Unknown Heirs: A previous owner passed away, and a long-lost heir emerges claiming ownership of the home.

• Liens: Unpaid property taxes, contractor bills (mechanic's liens), or child support liens left by the previous owner that attach to the property.

• Encroachments or Boundary Disputes: A neighbor claiming that your garage or fence is actually built on their land.

• Errors in Public Records: Filing mistakes, misinterpretations of wills, or clerical errors at the county clerk's office.