🏡 What Is Title Insurance — and Why It Matters

 

Title insurance protects your ownership rights to your home.
It steps in if someone later claims they have a legal right to your property or if a hidden problem with the title shows up after closing.

Before you buy, the title company searches public records to confirm the seller can transfer a clean title (no unresolved claims or ownership issues). Once that’s done, they issue a policy that protects you financially if something was missed.

If you’re getting a mortgage:

• You receive an owner’s title policy (protects your ownership).

• Your lender receives a lender’s policy (protects their loan).

These are separate policies. The lender’s policy does not protect you.

Unlike most insurance, title insurance protects you from past problems, not future events.

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✅ What Does Title Insurance Cover?

Even with careful research, some issues don’t show up right away. Title insurance protects you if any of these appear later:

🔹 Unknown liens

Old debts tied to the property (unpaid taxes, contractor bills, prior mortgages). These can legally follow the house—even after ownership changes.

🔹 Missing heirs

A former owner’s heir may surface later and claim partial ownership.

🔹 Marriage or divorce claims

A past spouse may assert rights if they were never properly removed from title.

🔹 Public record errors

Clerical mistakes happen—misfiled documents or recording errors can create surprise claims.

🔹 Survey & encroachment problems

Boundary disputes, incorrect surveys, or a neighbor’s fence/structure crossing onto your land.

🔹 Easements you didn’t know about

Someone (like a utility company) may have legal access across part of your property.

🔹 Fraud

This is growing—criminals sometimes forge deeds or impersonate owners to transfer property illegally.

If any of these arise, your title insurance typically covers:

• Legal defense costs

• Financial losses (up to your policy limit)

• Clearing the title so you truly own your home

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⭐ Why It’s So Important

Buying real estate is usually the largest investment you’ll ever make. Without title insurance:

• You could be responsible for old debts.

• You might have to pay attorneys out of pocket.

• In extreme cases, you could even risk losing part (or all) of your property.

With title insurance, that risk shifts from you to the insurance company.

And unlike homeowner’s insurance, this is usually a one-time premium paid at closing that protects you for as long as you own the property.

Let’s Talk

Brett Young
📞 (216) 703-5740
Key Realty & Property Management

Mega Million Dollar Producer
🏆 Award Winning Realtor
🏠 1200+ Properties and Counting

🔗 See what our clients earn:
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