Why Title Insurance?
Title Insurance protects property owners and lenders against hidden risks that effect title. There are many instances in which hidden risks cannot be discovered even with a meticulous title search. Hidden risk is why it so important for a purchaser to obtain an Owner’s Title Policy.
These are some of the risks protected under Owner’s Title Policy:
• Forged documents
• Clerical errors in public records
• Fraud
• Signature of minors
• Deeds from mentally incompetent persons
• Undisclosed or missing heirs
The examples above would cause the property owner great financial loss or even complete failure of title resulting in losing the property. Without Owner’s Title Coverage the purchaser assumes all the financial risk if there are defects that go undetected or even if the risk can’t be determined until later.