What is title insurance?

When a contract purchaser buys a home, the homeowner wants to be certain that the title to the land is clear. But even the most diligent search of the public records could fail to disclose a number of title defects. Read on to learn about a few of the problems that can suddenly surface.

1. A forged will or deed

2. A title transfer by someone underage

3. A married person conveying real estate without his or her spouse

4. Fraudulent impersonations

5. Secret marriages

6. Undisclosed heirs

7. Invalid divorces

8. False affidavits

Without the protection if title insurance, a homeowner or lender could be in serious jeopardy of losing their investment. Title insurance indemnifies against loss if any of these "hidden hazards" result in a claim against ownership.

Still have questions about title insurance? Read our owner's title policy FAQs for a complete guide to choosing which policy is right for you.