Have you ever made an expensive purchase such as a car, a boat, or a home, but decided to forgo the insurance that would cover you in case of an accident? Probably not.

Well, the same should go for your property rights! It’s important to have insurance to cover you and your assets even in the best of circumstances. When you purchase a home, you insure it to make sure that if a fire or a hurricane damages the building, it can be replaced or you have the funds to start over. Similarly, the protection title insurance gives you when you close on a property in Fort Myers or Cape Coral will ensure that you aren’t left high and dry in the event of a title dispute.

Once you have title (ownership) of the property, title insurance covers you into the past from the day of recording your deed and/or mortgage. That’s right, into the past. Your title company will search the property history to make certain that all mortgages, liens, judgements, and the like have been cleared up so you have “clear title.” And if a problem crops up that was hidden, you’re covered!

As an example, let’s say John and Karen were the owners of the property you just purchased. However, by the time the home was sold to you, Karen had already passed away. They had taken title as Husband and Wife but never legally married, and no one said anything. The title company filed a death certificate for Karen, and John signed the deed.

Fast forward a few years when Karen’s daughter returns to Florida from living overseas and realizes that John sold the home. Karen’s daughter is an heir to half of the property, the part that Karen owned. Now she wants her portion of the sale—she can file a claim against the policy, but you, the homeowner, are protected with your owner’s title insurance policy and don’t have to pay a dime!

At Title Junction we care about helping you stay informed throughout your real estate transaction. Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: Alternatives To Litigation

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