Your Home is the single most important and costly asset you will probably ever own. Problems with title to your property can limit your use and enjoyment of the real estate, as well as bring financial loss. Defects in title include but are not limited to forged deeds, releases or wills, mistakes in recording of legal documents, undisclosed or missing heirs, including spouses, deeds by minors, persons of unsound mind, fraud, and liens for unpaid taxes.
Title Insurance is issued after a careful examination of the title abstract/commitment of the property and any liens or title defects are satisfied. While even a thorough title search performed by the most experienced and knowledgeable experts in the industry can not ensure that no title defect exits, some problems just aren't revealed in public records. An "Owner's Title Insurance Policy" guarantees you have "clear title", that is absolute legal ownership with no unknown claims or debt against your property, for as long as you own the home.
Unlike other types of insurance that charge an annual fee, title insurance is paid only once in full at closing and protects the owner(s) the entire time of ownership of the property insured from any hidden title defects that existed prior to the issue date of the policy.