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What is Title Insurance?

Title insurance is protection against loss arising from problems connected to the title to your property.

When you purchase a home you are given title to the property, which means you receive full legal ownership. Unfortunately, sometimes there's a hidden mistake in a prior deed, will, or mortgage that may give someone else a valid legal claim against your property.

Title insurance covers the insured party for any claims and legal fees that arise out of such problems.

Who Is Covered By Title Insurance?

Lender Insurance - Most often you are required to purchase title insurance to cover the lender/bank. This insurance covers the outstanding balance on the mortgage but does not protect you the purchaser.

Owner Insurance - Will give you peace of mind and maximum protection in case there is a claim against your home.

Title insurance only protects against losses arising from events that occurred prior to the date of the policy. It extends backward in time for an indefinite period. This is very different from property or life insurance, which protect against losses resulting from events that occur after the policy is issued, for a specified period into the future.

What Does Title Insurance Protect Against?

Here are just a few of the most common hidden risks that can cause a loss of title or create and encumbrance on title:

• False impersonation of the true owner of the property
• Forged deeds, releases, or wills
• Undisclosed or missing heirs
• Instruments executed under invalid or expired power of attorney
• Mistakes in recording legal documents
• Misinterpretations of wills
• Deeds by person of unsound mind
• Deeds by minors
• Deeds by persons supposedly single, but in fact married
• Liens against the property or the seller that become the new owner's responsibility after the sale (unpaid mortgages, taxes, sewer and water assessments, bills owed to workers or other creditors)
• Fraud

What About the Costs?

New York State regulates the insurance premiums that we may charge. Our non-regulated fees are extremely competitive and consumer friendly. Because title insurance protects against what may have happened in the past, most of the expense incurred is in loss reduction. Which means that Sapphire looks to correct and solve problems before the policy is issued and before you purchase your home. This kind of insurance, which protect against losses from future events over which the insurers have no control.