Why Title Insurance
Title insurance is used by homebuyers and lenders for protection against delinquent taxes, undisclosed liens, legal judgments, forgeries, fraud and a host of other potential legal or financial problems that can arise when purchasing or refinancing property.
A title insurance policy provides you with peace of mind. It takes the risk out of acquiring property that may have a troubled legal history. While there should be no risks in transferring property, they do exist.
Before you purchased your home, it may have gone through several ownership changes, and the land on which it stands went through many more. There may be a weak link at any point in that change that could emerge to cause trouble. For example, someone along the way may have forged a signature in transferring the title, there may be unpaid real estate taxes or other liens. Title insurance covers the insured party for any claims and legal fees that arise out of such problems.