What is title insurance? And what are the top ten reasons you should have title insurance on your property?

Title insurance is indemnity insurance that protects you against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant to protect an owner's or a lender's financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.

1. The deed or mortgage may not have a clear title; there may be acts of forgery in the past that cloud the title.

2. The deed or mortgage may have been transferred by a person that was incompetent or did not have the legal right to sign the document over.

3. The deed or mortgage may have been made by a person other than the owner, but with the same name as the owner.

4. Title Insurance will cover attorneys’ fees and court cost should a claim be made against the deed or mortgage.

5. A title insurance policy will cover you for the amount of your covered losses.

6. Claims have risen over the past 20 years. You need to protect yourself.

7. The deed or mortgage may be voidable because it was signed while the grantor wad in bankruptcy.

8. There may have been a defect in the recording of a the document.

9. Title insurance would protect you against claims against your title or deed that may be made due to marital status and/or divorces.

10. A deed or mortgage may be subject to a federal tax lien that you are not aware of.