Simply stated, Title Insurance protects you as the Title Holder of a given property.
The purchase of a home is one of the most expensive and important purchases you will ever make. You and your mortgage lender will want to make sure the property is indeed yours and that no one else has any lien, claim or encumbrance on your property. Title insurance protects your interests and the interests of the lender, should a claim be made against your property.
Title insurance protects your home ownership rights from events that happened in the past. Hidden “title defects” such as A 50-year-old forgery, a stolen identity, an error by a clerk in the county recorder’s office, a tax payment applied to the wrong account – these are examples of defects* a title search may not uncover. Owner’s Title Insurance will protect you by covering losses and defending your property rights in court.
It is always recommended to contact your title rep and discuss the best policy that matches the property you plan on purchasing.