What Is Title Insurance


Homeownership is one of the most precious values of freedom in America. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home.


Title insurance is different than other types of insurance in that it protects you, the insured, from a loss that could occur from issues of the past. Other types of insurance like auto or health insurance protect you from matters that may occur in the future. Title insurance does not protect against future defects, but does protect you from risks or undiscovered interests of others. Another major difference is that you only pay a one time premium for a policy that remains in effect the entire time you own you home.


Title Insurance is only issued after a careful examination of an abstract of title. But even the most complete search cannot absolutely assure that no title defect is present, despite the knowledge and experience of professional title examiners. In addition to matters shown of record, other title problems may exist that can’t be disclosed by an abstract of title compiled from the public records. Title insurance eliminates any risks and losses caused by defects in the title from an event that occurred before you owned your home.


What is an owners policy?


An owners policy protects you, the home owner, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy. Your owners policy provides protection from financial loss due to defects that may be a lien on the title to your new home, up to the insured amount of your policy. Your owners policy provides protection for payment of legal costs if the title insurer has to defend the title against a covered claim, and payment of successful claims against the title to your home covered by the policy.


Why the buyer needs title insurance


Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in the examination of title. As a result you could be held responsible for claims brought against your home ownership. Title insurance assures that you will be covered up to policy amount.


How Does Title Insurance Protect You?


  • Undisclosed Heirs
  • Forged deeds, mortgages, or other documents
  • False impersonation of the true owner
  • Deeds by minors
  • Probate matters
  • Fraud
  • Adverse possession
  • Mistakes and omissions resulting from improper abstracting
  • Errors in tax records



Murray County Abstract & Title

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