Property ownership comes with hidden risks. A neighbor's fence on your land or an ex-spouse's unfinalized homestead rights can trigger expensive legal battles. Title insurance covers those legal fees and helps resolve the claims.
If you have a survey, right, and it tells you what the boundary lines are of your property, if your neighbor's property is encroaching on yours, you have a right to tell them, take that fence down, that's my property. And this can become a real rift between the neighbors. Well, who's going to cover you for that? All those legal expenses? Your title insurance policy. Okay. Now that's a simple, easy one. Take a different one where you just bought your house. And the prior owner, it's from a divorce, and the seller is the individual who was prior married, sells you the house, but never really got the signature from the divorcee. They have a right to that property still because they homestead rights, they lived in it. They can come back and say, I own 50% of your house. Well, what does that mean? I mean, if your house is $200,000, they have $100,000 worth of value to your home. So now you have to bring in the legal teams to, to fight this and get this thing rectified. That's gonna be money outta your pocket if you're not insured. If you are insured, that's where the title policy comes into play and will support you in all of those things.
