What does it cover

What does title insurance cover?

Title insurance protects you and/or your lender from losses resulting from claims against your ownership of real estate. It is unique because it provides coverage for problems or "hidden risks" (errors, forgeries, unpaid taxes, etc.) that possibly occurred before you took title to the property, yet can jeopardize your ownership rights. Title insurance coverage includes:

  • Protection from financial loss (up to the face amount of the policy) due to covered claims against your title;
  • Payment of legal costs to defend against covered claims;
  • Payment of successful claims against your title (up to the face amount of the policy).
  • Read your title insurance policy carefully and note possible exclusions and exceptions, which may include:
    • An unrecorded title defect you knew about;
    • Condemned land;
    • Building and zoning ordinance violations;
    • Payments required (except for legal access rights) because your deed failed to provide rights of use to adjacent land, streets, alleys or waterways;
    • Conveyance of title irregularities arising from a deceased person's estate, a bankruptcy estate or trust;
    • Restrictive covenants limiting your use of the property;
    • Discrepancies, conflicts or shortages in area, boundary lines, encroachments, protrusions or overlapping improvements;
    • Right of usage claims arising if your property is on or near a body of water, river or stream; or,
    • Renter or adverse possession claims from "parties in possession" of all or a portion of your property.