What Does Title Insurance On A Home Cover?

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   Mark Bartlett CLCS

   Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers

   Title insurance is not homeowners insurance. Title insurance is what a Title company will take out to protect you and the Title company in-case the Title is not clean. Here is an example. You buy a house from John Doe. The Title company does there job and sees John Doe is the only owner and the sale and transfer of title is clean. However John had a sister named Jane Doe that no one knew about who was also on title of the home and did not approve of the sale. What now??? This is where title insurance would come in. Title Insurance would pay for any potential loss due to a botched up deal. Usually the title insurance would pay off Jane to complete the sale since it was already finalized but there are several different ways this could go. I hope this helps to give you an idea of how title insurance works.

   Answered on May 13, 2013

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