I’ve heard that more than once. I have also heard that if I have a title search or title commitment which doesn’t identify any issues, I’m in the clear. Statements like these are shortsighted and show a misunderstanding of all the things title insurance covers. Title insurance is different than other types of insurance which insure future risks. Title insurance primarily looks to the past, but it does much more than that. Obviously, title insurance provides protection for human error in the title search process. Don’t forget the coverage for “blind liens”: those liens which do not appear on the public records. An insured owner is also protected against fraud and forgery, including fraud and forgery that occurred before the insured owner acquired the insured property and fraud and forgery that occurs prospectively during the insured owner’s ownership of the insured property. That is right, the title insurance policy you purchased when you bought your home provides coverage when a thief takes a home equity loan out against your home or when a thief steals your identity and tries to sell your home. In today’s world, that is valuable protection to have. If that wasn’t enough, your heirs who inherit your insured property and certain entities which you own and to which you transfer the insured property are also covered under your owner’s title insurance policy.  Those are pretty substantial benefits for that one-time fee.

For more information on this, contact Steve Bovan at sbovan@tuckerlaw.com.