Unlike many other types of insurance, which protect the insured against loss due to unexpected future events, title insurance protects against loss, which may occur due to events that took place in the past. Specifically, title insurance protects the buyer against loss resulting from previously unreported land title defects insured against such as forgeries, claims by missing heirs, recording errors, indexing errors, examination oversights, etc.
Title insurance provides value to the insured in two important and very different ways:
Protection if a future claim against the title to the real property results either in the loss of title to the property, or expenses to clear up title defects uncovered by such claims, title insurance will provide compensation up to the face amount of the policy.
Legal defense should a future claim against the title to the property require legal defense, the insurer will provide for legal defense of the insured’s title, no matter how many claims are brought during the life of the policy.
The two primary forms of coverage include:
Owner’s Policy provides protection to the property owner against loss resulting from defects in the title.
Mortgage Policy insures that the holder of the mortgage has a valid lien on the property and indemnifies the holder of the mortgage against loss resulting from title defects insured against.
Our company has agency agreements with both First American Title Insurance Company and Stewart Title Guaranty Company, the country's two largest title underwriters.