What is Title Insurance?
Land ownership is one of America’s most precious rights of freedom. When you purchase a property, you want to be sure the property belongs to you, free of all liens, claims or other encumbrances other than a mortgage given to your lender.
Title insurance is issued after a careful examination of the public records. Even the most thorough search cannot absolutely assure you that no title defects are present, despite the knowledge and experience of the title examiner. In addition to matters shown by the public records, other title issues may exist that cannot be disclosed by an accurate search of the record title.
What does Title Insurance protect you from?
- Outstanding mortgages, judgments and tax liens
- Mistaken interpretation of deeds, wills, or trusts
- Undisclosed heirs
- False affidavits of death or heirship
- Probate matters
- Deeds and wills by persons of unsound mind
- Defective acknowledgements due to improper or expired notarization
- Documents executed by a false, revoked or expired Power of Attorney
- Forged deeds, mortgages, releases and other instruments
- False impersonation of the true owner of the property
- Deed by minors or non-existent entities
- Deeds by persons falsely representing their marital status
- Rights of divorced parties
- Errors in the public records
- Deeds challenged as being given under undue influence or duress.
- Deeds affecting land in judicial proceedings (bankruptcy, receivership, probate, conservatorship, or dissolution of marriage)
- Deeds following judicial proceedings, subject to appeal or further court order
- Deeds following judicial proceedings, where all necessary parties were not joined
- Lack of jurisdiction over persons or property in judicial proceedings
- Fraud
What does Title Insurance cost?
The Kentucky Department of Insurance approves and controls the premiums for title insurance policies. There is a low one-time payment based upon the purchase price of the property. We consider this a nominal fee to protect your investment.
What are the two types of Title Insurance?
Your lender will likely require you to purchase a lender’s title insurance policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. It DOES NOT protect you. You should protect your equity in the property with an Owner’s Policy.
What does an Owner’s Policy provide?
Protection from financial loss due to covered claims that may be asserted against the title to your property, up to the face amount of the policy.
Payment of legal costs if the title insurer has to defend your title against a covered claim.
Payment of successful claims against the title to your property covered by the policy, up to the face amount of the policy.
Why does the Buyer need an Owners’s Policy?
Without Owners Title Insurance you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title. As a result, you may be held accountable for any prior liens, including mortgages, judgments, taxes, or other claims brought against your property. If this should occur, your title policy insures that you will be defended at no cost against all covered claims, up to the amount of the policy. An Owner’s Policy protects you from title defects and hidden hazards that existed prior to the issue date of your policy, and continues to protect you for as long as you or your heirs own the property.