Title Insurance

The title insurance industry has been protecting the American dream of homeownership for more than 125 years. Real property is the nation’s largest asset. The behind-the-scenes work of title companies ensures the quick and secure transfer of land, fostering lender, and consumer confidence in their real estate investments.

The objective of title insurance remains the same as it has always been – helping the parties in real estate transactions to determine their rights and interests, and assuring that land transfer is expeditious and secure. Protecting the parties involved in real estate transactions is the reason the title insurance product was developed.

In this country, matters affecting ownership and other real estate interests are entered in public records. Before a transaction is completed, a title search of the public records is made in an effort to locate potential problems so that they can be rectified and the transfer can proceed.

While most problems can be located in a title search by skilled professionals, there can be hidden hazards that even the most thorough search will not reveal. Examples include forgeries in the chain of title, a claim by a previously undisclosed relative of a former owner, or a mistake in the records. Liens, easements, rights-of-way, life estates, air and subsurface rights, and future interests are also found in a title search.

Title insurance is substantially different than other types of insurance coverage, which can often lead to a misunderstanding of the product. Title insurance emphasizes risk prevention rather than risk assumption. This emphasis on risk prevention is a labor-intensive and costly component of doing business, but the coverage offers the best possible opportunity for avoiding claims and losses in real estate transactions.