A title is the evidence or right to the ownership and possession of land. It is important to protect this right in your land, and you can do this by purchasing an Owner's Policy of Insurance. An Owner's Policy of Insurance will protect you from title defects that existed prior to the issuance of your policy, and covers the cost of legal defense of your title. The cost of the policy is a one time fee, and for this premium your title problems will either be resolved or the insured's losses will be paid.

Your lender may require you to purchase a Lender's Policy of Insurance. This policy insures the lender that they have a valid first lien on the property. It does not, however, protect your rights and interests. Because you are not protected by the Lender's Policy, it is important for your own piece of mind to insist on an Owner's Policy.

A policy of title insurance is issued after copies of the public records are carefully examined and reviewed. However, the most careful and thorough search cannot absolutely assure that title hazards are not present. Besides those shown in public record, there are other problems that can exist and not be disclosed in a search of the title. Title insurance protects against the following, which are just a small number of the possible hidden risks that can cause loss of title:

• false impersonation of the true owner of the property
• forged deed, releases or wills
• instruments executed under expired or invalid power of attorney
• errors in recording legal documents
• missing or undisclosed heirs
• misinterpretations of wills
• deeds by minors
• deeds by persons of unsound mind
• deeds by persons supposedly single, but actually married
• liens for unpaid inheritance, income, estate or gift taxes
• fraud