Some Reasons Why You Need Title Insurance

There are many things that can come up in the time you own your property that cause title defects of one type or another. Lenders will require title insurance to make certain they are covered and owners should look into insurance and make certain they know what they are purchasing insurance for, or if they decide to forgo it, what they might be relinquishing as far as coverage. Some examples of title issues are:


Any forgery of documents in the chain of title

Any document signed by a person under age at the time of signing or signed by an insane person

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.

Any document signed by a power of attorney and the power of attorney expired

An heir or other person presumed dead may appear and recover the property or an interest in the property

Title insurance covers attorneys’ fees and court costs

By having insurance, it simplifies the sale process

Title insurance reimburses you for the amount of your covered losses.

Each title insurance policy is paid in full with a one time premium for as long as you or your heirs own the property

Recording errors are covered under the policy

Marital status and validity of divorces come up frequently. Title insurance protects against claims made by non-existent or divorced "wives" or "husbands."

Over the last 24 years, claims have risen dramatically.

These are just a few of possible scenarios that title insurance would cover. When you intend to buy a property, carefully research the advantages and disadvantages of purchasing title insurance. It is probably the cheapest insurance you will buy. If you have questions about purchasing your property from us, please call one of our loan officers at 763-784-3400 or visit our website at www.contractorscapital.com.