Title Insurance is an insured statement of the condition of your title or ownership rights to a certain piece of property. A title insurance policy describes your property in detail and states what limitations, if any, there are to your ownership. (For example, you may take ownership subject to existing liens or encumbrances. You may not own mineral rights or easements may have been granted to utility companies or adjacent property owners.)
A title insurance policy provides you with peace of mind. It takes the risk out of acquiring property whose legal history is unknown to you. While there should be no risks in transferring title, they do exist. Through the years your new property may have changed hands many times by way of sale, inheritance, foreclosure or bankruptcy. Each transfer was an opportunity for an error in title to arise. If an error occurred and has never come to light, it puts your title in jeopardy. You could lose your property and the money you paid for it.
Even if you successfully defend your rights of ownership, the cost in time and legal fees could be prohibitive. Among the many risks against which title insurance protects you are: