Title insurance covers issues relating to a property’s title; it is not a substitute for homeowner’s insurance and will not cover general property-related problems. In this blog, we’ll be outlining the main issues that title insurance covers, along with the problems that it does not cover.
However, please remember that every title policy will differ in the type of coverage it offers; so when taking out title insurance, it’s important to read through the policy with a fine-tooth comb and ensure that it provides you with the specific coverage you require.
Title insurance coverage
As mentioned above, the included coverage will vary from policy to policy, but generally speaking, title insurance will cover the following title-related issues:
- Disputes or defects created by a prior event that prevents the property from having a clean title – such as claims to ownership from an unknown or undisclosed heir or conflicting wills
- Liens – such as outstanding debt, taxes or lawsuits tied to the property
- Mistakes in public records and property surveys
- Title-related fraud or forgery
Remember that you as the buyer will only be protected if you obtain owner’s title insurance – lender’s title insurance will only protect your mortgage lender. Find out more in our ‘What Is Owner’s Title Insurance?’ blog.
What is not covered by title insurance?
Title insurance will only cover you for issues that relate specifically to the title of the property, and will therefore not cover you for more general property-related issues, such as property damages, general repairs or pest infestations, and it will not cover you for issues that have occurred as a result of your own doing. You may also find that your policy has some exclusions; for example, you may not be covered for title issues that are not disclosed in public records and you’re unlikely to be covered for any unresolved title defects that you already knew about before buying the property.
Find the most effective title insurance coverage
Speaking to an expert is the best way to protect yourself and ensure that you have the most effective type of coverage possible. Every policy varies, so it’s important to fully understand what is and is not covered. If you’re looking to take out title insurance, please get in touch via email, telephone or the website at any time and I’ll support you in finding the most appropriate title insurance for your commercial or residential real estate needs.