Title Insurance Guides

Title insurance is the type of insurance that provides coverage to any losses incurred from title. For getting this benefit, the title must be one that exists in public records and this must be in record from the time of purchase of property.

Possible Defects

Some of the possible defects for which title insurance provides coverage are:

  1. Mistakes that takes place in examination of record
  2. Forgery
  3. Omissions or errors that occur in deeds
  4. When all heirs are not disclosed
  5. When some of the heirs are missing
  6. Lien for taxes that is unpaid
  7. Contractor liens

Before the issue of title insurance, the companies will check for any defects in title. This is done by examining deeds, wills, court judgments, divorce decrees, maps, encumbrances, mortgages, tax records etc. all of them being public documents. It is on the basis of this title search that the ownership of a property is determined. You can also know outstanding debts if any, on the property as well as the present condition of title of the property.

Defining Title Insurance

Title insurance provides protection against all kinds of losses suffered by the insurer when a title is having defects and has not cleared all defects. Defects associated with a title are encumbrances, liens and defects that were not known by the policy holder while the title was issued to him. Risks covered by title insurance are described by the terms and conditions of policy. There are certain risks that are excluded from coverage which is also mentioned in terms and conditions. Reimbursement will be given for losses that are covered by policy and the reimbursement amount is up to face amount of policy. Any legal expense related to this too is covered in title insurance.

The protection is available from policy issue date till new ownership is registered on the title of property. All personal and real property comes under this section. The most common type of title insurance is lender’s policy and Policy holder.

Difference Between Title Insurance And Home Owners Insurance

A defect that occurs to title is the only thing that comes under title insurance, while home owners’ insurance cover insures the house and its contents. Before giving title insurance all the papers related to title of property is examined and compared. All public records are searched and examined and at times a survey of the property is also done. If the loss that occurs to title is found they might at times alert the insurer as well. Cost of premium is to be paid once only as there is only single payment and this has to be paid at the time of escrow closing. Home owners insurance needs premium to be paid monthly.


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