An owner's title insurance policy insures that a buyer will receive title to the real estate free and clear of any matters except those listed. The policy insures that the title to your property is yours and that you own it subject to those matters stated in the policy. It insures that the insured will be protected from loss or damage as a result of title defects.
There are many title issues that could cause you to lose your property or your mortgage investments. Even the most careful search of public records may not disclose the most dangerous threat: hidden risks. These issues may not be uncovered until years later.
Without title insurance from a reputable and financially secure company your title could be worthless. With the proper insurance, your rights could be defended in court.
Here are some of the issues that occur most frequently
Title insurance is a written guarantee that an insurance company will undertake, at its own expenses, the defense of your title in all legal actions or proceedings alleging the title to be other than as insured. You have an insurance contract indemnifying you, according to its terms, against loss or damage due to title defects and backed by the known assets and reserves of a strong insurance company. You have the safety and security that title insurance alone can provide your real estate purchase.
Premiums for most other forms or insurance are recurring and must be paid periodically. But for title insurance, only one premium is paid. It is a small cost to guarantee your peace of mind.