Why do I need Title Insurance?

OWNERS INSURANCE
Even the most detailed examination of title by a real estate attorney is not a guarantee that all potential problems or issues have been identified or resolved. Hidden risks can result in costly lawsuits and legal fees. An owner’s title insurance policy protects against these potential risks:

• Clerical errors made at the Registry of Deeds.
• Forged deeds, mortgage releases or other forged documents.
• Deeds made by incompetent persons.
• Falsification of records.
• Deeds made by minors.
• Previously undisclosed heirs and previous owners.
• Improper legal description.
• A deed executed using an expired or invalid power of attorney.
• Title taken as a result of an improperly probated will.
• False representation of the true owner of the property.
• Improperly indexed liens on the property.
• And much more!

Title insurance protects you against these problems.

LENDERS INSURANCE
All lenders require title insurance for the amount of the loan, but this insurance only covers the lender, not YOU. To be covered by title insurance a homeowner must purchase a separate owner’s title insurance policy. The cost of the lender’s title insurance policy, except for a nominal charge, is included in the cost of the owner’s title insurance policy. In addition, after purchasing an owner’s title insurance policy, in most jurisdictions, the property owner is entitled to receive a discount called a “reissue rate” when the owner refinances any loan for at least ten years.