Title Insurance

How many times have I purchased title insurance over the years? Can’t even imagine.

It’s one of those expenses that you assume you must do, and you must if you have a lender, or you won’t get a loan. However, if you’re purchasing ranch property and you pay cash, you may think about taking a pass on title insurance, and I’ve done that.

However, I’ve learned something about title insurance this past year and now I’m a believer.

When you have a title guarantee provided by title insurance, you are not only protected to the dollar amount you paid for, but you also are entitled to the cost of legal defense of your claim. In other words, the title company must pay to establish whether or not the title problem you encounter really exists. The cost of resolving a legal issue can be the most expensive part of solving a title problem and the coverage by the title company, with regard to the legal defense, is not limited.

There are several ramifications of this, but the most important is that because you are backed by big money, you are on a level playing field with almost any adversary and legal issues are sometimes resolved on the basis of the law, but more often are resolved by the size of the bankroll of those in the dispute. With the title company on your side, you are much more likely to come out with a win or at least an acceptable compromise.

It’s almost as if the fact that you are insured makes it true. How valuable is that?