What is Title Insurance?

“What is title insurance, and do I really need it?” This is a common question we hear from our clients! Title insurance protects homeowners and lenders from property loss or damages due to defects, liens, or encumbrances in the title to a property. If you’re using financing to purchase a home, you MUST have a title insurance policy in place as it’s required by all lenders. However, if you’re paying cash for a home you’re able to decide whether or not to buy a title insurance policy.

Here are 20 reasons why it might be a good idea:

  1. Title insurance will protect you against a loss on your home or land due to a title defect.
  2. A deed or mortgage in the chain of title may be a forgery.
  3. Claims consistently arise due to marital status or validity of divorces.
  4. A deed or mortgage may have been made by an incompetent or underaged person.
  5. A deed or mortgage made under an expired power of attorney may be void.
  6. A deed or mortgage may have been made by someone with the same name as the owner.
  7. A child born after the execution of a will may have an interest in the property.
  8. Title transferred by an heir may be subject to a federal estate tax lien.
  9. An heir or other person presumed dead may appear and recover the property or an interest.
  10. A judgement regarding the title may be voidable because of some defect in the proceeding.
  11. By insuring the title you can eliminate delays when passing the title along to someone else.
  12. Title insurance reimburses you for the amount of your covered loss.
  13. Title insurance helps speed negotiations when you’re ready to sell or obtain a loan.
  14. A deed or mortgage may be voidable if signed while the grantor was in bankruptcy.
  15. Claims have risen dramatically over the last 30 years.
  16. There may be a defect in the recording of a document upon which your title is dependent.
  17. Title insurance covers attorney fees and court costs.
  18. Many lawyers protect themselves as well as their clients by procuring title insurance.
  19. A deed or mortgage may have been procured by fraud or duress.
  20. A title policy is paid in full by the first premium for as long as you own the property.

If you’re interested in learning more about title insurance or purchasing a policy, contact Nevada Title at 702.251.5000.