Title insurance is perhaps one of the most misunderstood of all types of insurance.
In other words, if you have title insurance, you are insured that your property can be conveyed to another without defects or encumbrances. Additionally, title insurance protects the policy holder from claims against the properties from others. Many consumers erroneously believe that if a through title search is conducted on a piece of property then title insurance is not needed. The purpose of title insurance, however, is not to insure one for know defects but to ensure for unknown defects. Unknown defects can include forgeries, fraud, improper court procedures, missing heirs, recording mistakes and numerous other potential title defects that could be next to impossible to uncover during an extensive title search.