1. There is a one-time cost for coverage. Other insurance requires continuing payment of premiums;
2. It protects against possible title defects which may have happened in the past. Other types of insurance protect against matters which have not yet occurred; and
3. Coverage is continuous as long as the insured has any liability for title defects prior to the effective date of the policy. Other insurance can be cancelled or may lapse for nonpayment of premium.

Generally, the risks which are covered by title insurance include, but are not limited to, the following:

• Errors of judgment, negligence and mistakes by the title examiner
• Misfiling or improper indexing of recorded documents by the recorder’s office
• Forgeries or false impersonation of those executing documents
• Secret marriages or misrepresentation or fraud as to actual marital status
• Undisclosed heirs or children born after execution of a will
• Execution of documents under fraud, duress or undue influence
• Defective acknowledgments by a notary or other official
• Errors in reports or information provided by tax officials
• Judgments, liens or other restrictions which create a cloud on the title
• Confusion due to similar or same names
• Lack of capacity (legal age or mental competency) of the grantor
• Delivery of instruments after the death of the grantor
• Inheritance taxes or estate matters of prior owners
  

Even though your mortgage lender will require title insurance insuring it has a first lien on the property, you are not protected unless you purchase an owner’s policy. The cost of an owner’s policy in addition to the lender’s policy is usually minimal. You are making a substantial investment in your property and, therefore, don’t take a huge chance with that investment just to save a little money. Dollar for dollar, title insurance is the best protection money can buy.