Even if I have no title insurance, the equity I have built up in my house cannot be affected. No, your equity can be affected by a claim to your property's title. Title insurance will pay for defending against any lawsuit attacking the title as insured, and will either clear up title problems or pay the insured's losses up to the policy limits. For a one-time premium, an owner's title insurance policy remains in effect as long as the insured, or the insured's heirs, retain an interest in the property, or have any obligations under a warranty in any conveyance of it. Owner's title insurance, issued simultaneously with a loan policy, is the best title insurance value a property owner can get.
Title insurance is issued after a careful examination of copies of the public records.
But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. False impersonation of the true owner of the property. Forged deeds, release, or wills. Undisclosed or missing heirs.