Title
Insurance Protection Explained
Title
Insurance insures that the "record" title is good
subject only to the exceptions expressly set out in
the policy. lt also insures against certain matters
which do not appear of record, such as forgery, identity
of parties, incompetence of former owners, interest
of missing heirs, and status of individuals not having
the "right" to sell property.
The
standard owners policy and standard mortgage policy
are based on public records of the recording district
in which the land is located. It does not insure against
matters which would only be disclosed by actual inspection
or survey of the property. It does not insure against
certain matters not shown by the public records such
as unrecorded easements, liens or money obligations;
unrecorded utility rights of way, public or private
roads, community driveways and other types of encumbrances,
or against the rights or claims of persons in possession
of the property which are not shown by the public
records.
Upon
application, the issuing company may specially cover
matters which are disclosed by a physical inspection
and/or a survey of the property, subject to any exceptions
which the inspection will determine to be proper.
An additional risk premium is charged for this type
of coverage. Insurance of this kind is called extended
coverage.
