You’ve probably heard of common insurance. Automobile insurance, life insurance, health insurance, and homeowners insurance are all available. You may even be familiar with specific branches of each type of insurance, such as the various levels of coverage available for auto insurance, the various types of life insurance policies available, the regulations that come with some health insurance policies, and whether or not you even need homeowners insurance. But, do you know what title insurance is? If not, keep reading for a quick primer on title insurance policies.
Most commonly, title insurance is an insurance policy purchased to protect the owner and the property, usually land, from claims against the ownership of the property. In other words, title insurance will protect you if someone claims you don’t own property that you actually do.
You may be compensated for all procedures involved in proving your ownership of the property, depending on the specific title insurance policy. Hiring an attorney as a defense and going to court are examples of such procedures.
A title insurance policy, depending on the specific policy, will pay for the fees associated with such procedures and reimburse you for the money spent if you win the case.
A title insurance policy is essential because anyone can show up at your door claiming to have rights to your property at any time. Because property, such as land, does not deteriorate and simply vanish or find a new home in a junkyard, there are likely people who have dealt with your land property at some point.
When you buy a house, you may be purchasing land that others have certain rights to. In other words, you might not get a clear title. If this happens to you and someone claims certain rights to your property, a title insurance policy can help.