Q. Doesn't a search of the public land records determine if there are any problems with title to my property?
A. Yes. But title insurance does much more. If a problem arises which was the result of a mistake made during the search, or if a defect exists which is not of public record but is an insured risk, then a title policy provides you with a reimbursement against loss that you may sustain.

Q. But I thought the bank or lending institution always had the title insured?
A. It usually does. But its policy only insures its own interest in your property. You could lose your equity if you do not have Owner's Title Insurance.

Q. If I didn't have Owner's Title Insurance, how serious would a claim against my home be to me personally?
A. It could be very serious. It would mean you would have to pay all expenses involved with the legal defense of your rights, and could even result in complete loss of your equity if your defense is unsuccessful. Just what is a title defect? It is any one of number of things that could jeopardize your interest. It could be an unsatisfied mortgage, lien, judgment or other recorded claim against the property. A defect could also take the form of a claim by a third party such as an unknown heir or prior owner whose title was transferred by a forged or fraudulent agency.

21 Hidden Title Defects:

Click here for list of 21 hidden title defects