How does Title Insurance differ from other types of insurance?

Title insurance is different from other types of insurance in that it protects you, the insured, frm loss that may occur from matters or defects from the past. Other types of insurance such as auto insurance, life insurance or health insurance, cover you against losses that may occur in the future. Title insurance does not protect against a defect that may originate at a later date.

What are the risks?

There are numerous defects or problems that can arise to cause an attack or loss of the title to your property. Some of these include problems not disclosed by the most careful search of the public records (the title search). Hidden risks can cause a total loss of your investment or heavy legal expenses in the defense of an attack on the title. Some title problems may show up months or years after the original purchase of the property. The following are examples of matters that can cause loss of title or an expensive lawsuit: Forged deeds, releases, wills or other legal documents Failure of spouses to join in conveyances Undisclosed or missing heirs Deeds from minors, aliens or persons of unsound mind Errors in indexing of public records Liens for unpaid taxes including estate, inheritance, income or gift taxes Erroneous reports furnished by tax officials Mistakes in recording legal documents Deeds from defunct corporations Unprobated wills