Title Insurance -

Why You Need Title Insurance

With home ownership comes the need to protect the property against the past, as well as the future. Each successive owner brings the possibility of title challenges to the property. Title insurance protects a policyholder against challenges to rightful ownership of real property, challenges that arise from circumstances of past ownerships.

A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss.

Why Title Insurance is Important and Worth the Money?

Reasons to have it!


  • Title insurance protects the interests of property owners and lenders against legitimate or false title claims by owners or lien holders. It insures the title to the investment, unlocking its potential as a financial asset for the owner.
  • Title problems are discovered in more than one-third of residential real estate transactions. These “defects” must be resolved prior to closing. The most common problems are existing liens, unpaid mortgages, and recording errors of names, addresses or legal descriptions.
  • A homeowner’s title insurance policy protects the owner for as long as he or she has an interest in the property; and the premium is paid only once, at closing.
  • Title insurance is different from other forms of insurance because it insures against events that occurred before the policy is issued, as opposed to insuring against events in the future, as health, property or life insurance do. Title insurance is loss prevention insurance.
  • The title company will perform a thorough search of existing records to identify all possible defects in order to resolve them prior to issuing a policy. They perform intensive and extensive work up-front to minimize claims. The better they do this, the lower their rate of claims and the more secure your level of protection.
  • Researching titles is extremely labor-intensive since only a small percentage of public records are computerized. The industry invests a substantial amount of time and expense to collect and evaluate title records. As a result, the industry’s claims experience is low compared to other lines of insurance.
  • Dollar for dollar, title insurance is the best investment you can make to protect your interest in one of the most valuable assets you own: your home.
20 Reasons to have Title Insurance:
  1. A deed or mortgage in the chain of title may be a forgery.
  2. A deed or a mortgage may have been signed by a person under age.
  3. A deed or a mortgage may have been made by an incapacitated person or one otherwise incompetent.
  4. A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void.
  5. A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner.
  6. The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
  7. A deed or mortgage may have been procured by fraud or duress.
  8. Title transferred by an heir may be subject to a federal estate tax lien.
  9. An heir or other person presumed dead may appear and recover the property or an interest therein.
  10. A judgment or levy upon which the title is dependent may be void or voidable because some defect in the proceeding.
  11. Title insurance covers attorneys’ fees and court costs.
  12. Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
  13. A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
  14. There may be a defect in the recording of a document upon which your title is dependent.
  15. Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims made by non-existent or divorced “wives” or “husbands.”
  16. Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance.
  17. By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else.
  18. Title insurance reimburses you for the amount of your covered losses.
  19. Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property.
  20. Over the last 24 years, claims have risen dramatically.