A Word About Title Insurance
Generally a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future "fender bender" or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance, but can be just as devastating. The following information will answer some commonly asked questions about title insurance.

Will You Get Clear Title?
It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.

How Do You Find Out What Claims Exist?
In order to determine the status of title, the title company conducts a diligent search of the public records for those documents associated with the property. The title company then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction. This is the first benefit you receive from title insurance.

What About Undiscovered Claims?
The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered "hidden risks." "Hidden Risks" are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples of "hidden risks" which could provide a basis for a claim after you have purchased the property. In order to protect you against this possibility, the title company provides insurance coverage for such claims. This is the second benefit you receive from title insurance.

How Does a Title Insurance Policy Protect Against All These Claims?
If a claim is made against your insured title, the title company protects you by: (1) Defending your title, in court if necessary, at no cost to you, and (2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.

Title Insurance Protects Your Asset
Title insurance gives you the assurance that possible clouds on title to the property you are purchasing - which can be discovered from the public records - have been called to your attention so that such defects can be corrected before you buy. Additionally, it is insurance that if any undiscovered claim covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.

Only One Premium
Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner's Title Insurance Policy in force.

Why Do You Need Title Insurance?

To protect possibly the most important investment you'll ever make - the investment in your home. With a title insurance policy, you as owner, have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.

How can there be a title defect if the title has been searched?
Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.

What title insurance protects against
Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:

	False impersonation of the true owner of the property
	Forged deed, releases or wills
	Instruments executed under invalid or expired power of attorney
	Undisclosed or missing heirs
	Mistakes in recording legal documents
	Misinterpretations of wills
	Deeds by persons of unsound mind
	Deeds by minors
	Deeds by persons supposedly single, but in fact married
	Fraud
	Liens for unpaid estate, inheritance, income or gift taxes

What protection does title insurance provide against defects and hidden risks?
Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.

What this means to you
The peace of mind in knowing that the investment you've made in your home is a safe one.

20 Reasons For Title Insurance

	A fire destroys only the house and improvements. The ground is left. A defective title may take away not the only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss.
	A deed or mortgage in the chain of title may be a forgery.
	A deed or a mortgage may have been signed by a person under age.
	A deed or a mortgage may have been made by an insane person or one otherwise incompetent.
	A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void.
	A deed or a mortgage may have been made by a person other than the owner, but with the same name as the owner.
	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.
	A deed or mortgage may have been procured by fraud or duress.
	Title transferred by an heir may be subject to a federal estate tax lien.
	An heir or other person presumed dead may appear and recover the property or an interest therein.
	A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
	Title insurance covers attorneys’ fees and court costs.
	Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
	By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else.
	Title insurance reimburses you for the amount of your covered losses.
	A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
	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.
	There may be a defect in the recording of a document upon which your title is dependent.
	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."
	Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance.
	Over the last 24 years, claims have risen dramatically.