Purchasing a home is largest single investment most of us will make in our lifetime.  And when you purchase that home, you will choose to protect it by purchasing hazard (home-owners) insurance and flood insurance (if applicable).  So it only makes sense to protect your home against the hidden title hazards.  Other types of insurance such as hazard and flood protect your home against possible future events and charge an annual premium.  Title insurance protects your investment against defects that already exist in the title and is purchased with a one-time premium.

Some examples of title hazards include:

§         A forged signature on a deed, resulting in no actual transfer of ownership to you.

§         An unknown heir of a previous owner who is claiming an ownership interest in the property.

§         Mistakes made in the public record.

§         Instruments executed under an expired or fabricated Power of Attorney.

Title insurance offers financial protection against these and many other title hazards.  Your policy will last as long as you have an interest in the insured property.  And there are 2 types of title insurance.

 Owner’s coverage - protects the buyer