What is a title insurance?

What is a title insurance

Insurance on your title.

OK, if you are buying a home, you purchase title insurance to cover the title of your home, in case there would be unforseen claims against it.
They will do a complete title search first of course to see if there are any issues known. But you never know when a sale 15 years ago, perhaps the exwife did not sign a waiver and her heir upon her death files suit for a claim on the home. ** used for example, but many unknown factors in deeds.

Title insurance is an insurance policy that covers all aspects of your ownership of property. The title company does a title search to make sure that the previous owners have validly transferred the property, making sure that your ownership will be considered clear. The title company also searches for any prior or current liens against the property that might affect your ownership. Those liens can include mortgages, legal judgments, real estate taxes or income taxes, water or sewer liens, etc.

They will also review the survey of the property lines to see if there are any encroachments by neighbors, or if your improvements (house, deck, outbuildings, patios, driveways, fences, etc.) are encroaching on neighboring property.

Once the searches are completed and you pay the premium they will issue an insurance policy that says your title is clear and they will defend you (and pay you) if anyone comes along who has a better claim of ownership than you.