Title insurance is perhaps the most unique form of insurance offered today. The product is not new, first issued in 1878, but it remains widely misunderstood by most consumers. This guide is designed to answer some of the more common questions.

WHAT DOES TITLE INSURANCE DO?

Basically, it protects the insured from losses as the result of claims on one's ownership of land. For instance, a seller may forge a signature of another, creating a loss for a new owner. Other problems that can occur include: Fraud; Improper Court Proceedings; Recording Mistakes; Missing Heirs; Unfiled Liens; Incompetency of Previous Sellers.

WHAT ELSE DO I GET?

Probably one of the most comforting features of title insurance is the obligation of the insurer to defendyou against claims of others.  A neighbor may claim rights to a portion of your land.  Without title insurance, you would have to bear the cost of settling this dispute through the courts, regardless of the validity of the claim.

ARE THERE DIFFERENT TYPES OF TITLE INSURANCE POLICIES?

There are two basic forms of title insurance - an Owners Policy and a Loan Policy. As the names indicate, the Owner's Policy covers the landowner and the Loan Policy covers the lender on a particular parcel of real estate.

IF A LOAN POLICY IS ISSUED, WHY DO I NEED AN OWNER'S POLICY?

A Loan Policy offers no protection to the landowner. A claim may arise that does not jeopardize the lender's interest, but may, in fact, cause a great loss to the owner. An example would be the one outlined earlier, when a neighbor claims rights in your land,

HOW LONG AM I PROTECTED?

In a word... forever. You and your heirs are protected for as long as you own the property, and in certain instances even after the property is sold.

HOW MUCH DOES IT COST?

Fees vary from state-to-state, but in all cases it is a one-time cost that doesn't have to be renewed like other forms of insurance. (Refer the Fee Schedule for specific costs)