Title Insurance

The purchase of a home is possibly the largest investment some of us will ever make.  Because of that, most homeowners take the necessary precautions to insure their investment.  This is usually done through the purchase of various hazard insurances some required by the lender and some the homeowner may choose.  But there is one hazard that most homeowners are not aware of  and that is the defects in the title of their property, which may cause the owner to lose a partial, or in some cases; their entire investment.  Fortunately, there is a way to protect your investment from these title defects.  It comes in the form of title insurance.  We search the past to protect the future.

 

What is Title Insurance?

Title insurance protects your asset by giving you the assurance that possible clouds on the title to the property you are purchasing-which can be discovered from the public records-have been called to your attention that such defects can be corrected before you buy.  Additionally it is insurance that is any undiscovered claims covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.

The Past Can Determine Your Future

Title insurance is a unique form of insurance.  It provides coverage for future claims for future losses due to title defects which are created by some past event (i.e. event prior to the acquisition of the property)  These risks are far less obvious than those protected against by automobile insurance, but can be just as devastating.

What About Undiscovered Claims?

The title to the property that you have purchase could be seriously threatened or lost completely by hazards which are considered "hidden risks".  hidden risks are those matters, rights or claims that are not shown by the public records and therefore are not discoverable by a search and examination of those public records.  Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation and unknown errors in the records are examples of "hidden risks" which could provide a basis for a claim after you have purchased the property.  In order to protect you against this possibility, Guaranty Title provides insurance coverage for such claims.  This is the second benefit you receive from title insurance. 

Only One Premium

Unlike other forms of insurance, the original premium is your only cost as long as you own the property.  There are no annual payments to keep your owner's title insurance policy in force.