21 Reasons For Title Insurance
01. Loss of Land A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss.
02. Forgery A deed or mortgage in the chain of title may be a forgery.
03. Qualified Signee A deed or a mortgage may have been signed by a person under age.
04. Insane in the Brain A deed or a mortgage may have been made by an insane person or one otherwise incompetent.
05. Voided Title A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void.
06. Same Name A deed or a mortgage may have been made by a person other than the owner, but the same name as the owner.
07. Claim of the Unborn The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
08. Fraud A deed or mortgage may have been procured by fraud or duress.
09. Estate Tax Lien Title transferred by an heir may be subject to a federal estate tax lien.
10. Heirs An heir or other person presumed dead may appear and recover the property or an interest therein.
11. Judgment or Levy A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
12. Attorney Fees Title insurance covers attorneys’ fees and court costs.
13. Expedited Negotiations Title insurance helps speed negotiations when you are ready to sell or obtain a loan.
14. Transferring By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else.
15. Reimbursements Title insurance reimburses you for the amount of your covered losses.
16. Bankruptcy A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
17. Paid in Full Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property.
18. Document Recoding There may be a defect in the recording of a document upon which your title is dependent.
19. Divorce Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims by a non-existent or divorced “wives” or “husbands”.
20. Protection Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance.
21. Claims Over the last 24 years, claims have risen dramatically.