TITLE INSURANCE is designed to provide the maximum degree of protection from adverse title claims or risks. It is available to homeowners, lenders and others with an interest in real estate. Unlike other types of insurance, it protects against future losses arising out of events that have occurred in the past.
Your attorney performs a title search of the property by looking in the public records. Even the most thorough search of these records may not reveal some of the “hidden” hazards, such as:
A Loan Policy of title insurance is issued to protect your mortgage lender, but that policy does not provide title insurance protection for you.
You may obtain an Owner’s Policy of title insurance which provides title insurance protection for you. The cost of an Owner’s Policy of title insurance is a one-time fee that you pay when you purchase the real estate.