If asked, "Why is title insurance important?" one can answer in a simple word: Protection.
To exemplify, imagine you are purchasing some real estate, and just after you have signed on the dotted line and think the property is yours, you hit a "snag." To your surprise, there are unpaid property taxes. Or, maybe the previous deed is found actually to be a forgery. Or, an unknown heir steps forward with a claim on the property. Or, something as simple as a clerk made an error when inputting the public record. Any of these scenarios, and others about prior but unknown liens, defects, or encumbrances, could happen.
To find out more about title insurance, including the types of insurance and what it does and doesn't cover, please visit our FAQs page.
Title Insurance FAQs