What is Title Insurance?
Title Insurance Description
Title insurance is a very unique product in the insurance industry. It is the only form of insurance that functions in reverse. Title insurance protects your title to your property from the date that the policy is issued BACKWARDS in time. This is because the purpose of title insurance is to
Before you purchased your Maryland, it may have gone through a number of ownership changes, and the land on which it is located likely was conveyed many more times. Lenders obtain a security interest in your property in the amount of the loan at the time that you purchase it. A lender’s security interest is only as good as the underlying asset; that is, your property. If your title to the property is defective, their security interest may be worthless. This is why ALL lenders require title insurance to protect their interests. As a buyer, and future owner, you should have the same concern and take the same wise precaution. A Maryland or Pennsylvania owner’s policy is issued simultaneously, for a small additional charge, with the lender’s policy, which you are already required to purchase, and therefore the most economical method to protect your interest is to obtain an owner’s policy at settlement.
You may never file a claim for your Maryland property, but if you need to, title insurance will help protect your investment while saving you from potential legal expenses. A defective deed based on one of the described risks will destroy your interest in your property, and your financial investment, just as surely as a storm would destroy the structure. You obtain homeowner’s insurance to protect against the storm, so it only makes sense to protect yourself against the title risks as well.
Your Maryland title policy, combined with your homeowner’s policy, provides maximum protection against the variety of claims or hazards that you may encounter, whether
Title defects include things such as:
- Clerical errors in recording legal documents
- False impersonation by those purporting to be owners of property
- Fraud in connection with
- Inaccurately executed and/or recorded deeds
- Inadequate surveys
- Incorrect indexing
- Incorrect legal descriptions
Mistakeninterpretation of wills and trusts
- Non-delivery of deeds
- Undisclosed or missing heirs
- Unsatisfied claims not shown on
- Wills not properly probated
Excalibur Title and Escrow can help you construct that security fence around your home. Call or email one of our professionals today!