A real estate purchase is one of the most important investments you can make, so be certain to protect you land ownership against possible title problems that can hinder the transfer of your real property or make it unmarketable. Title insurance is not as well understood as other types of home insurance, but it is just as important. When purchasing a home, you are really purchasing the title to the property – the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. These problems are defects that occur before the date of the policy and remain undisclosed until sometime later. Title insurance protects against these types of hazards.

An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, as the policyholder, the best possible chance for avoiding title claims and losses. Title insurance begins with a search of the public records affection the real estate concerned. An examination is conducted by the title agent to determine whether the property is insurable. Through the search and examination title problems are disclosed so they can be corrected whenever possible. However, even the most careful preventative work cannot locate all hidden title hazards. In spite of all the expertise and dedication that go into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises such as: 

A forged signature on a deed, which would mean no transfer of ownership to you

An unknown heir of a previous owner who is claiming ownership of the property

Documents executed under an expired or a fabricated power of attorney

Mistakes in the public records

Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance protects you against loss from hazards and defects that may already exist in the title and is purchased with a one-time premium.

Your home is your most important investment. Before you go to closing ask about your title insurance protection, and be sure to protect your new home with an owner’s title insurance policy.