What kind of claims does plain language title insurance protect against?

Plain language title insurance is designed to protect property owners from claims made by third parties that are not recorded in public records. This type of insurance ensures that the homeowner has clear ownership free from undisclosed interests that may arise, such as claims by individuals who might assert a right to the property based on a prior agreement or other unwritten claims.

The nature of title insurance is to safeguard against past issues that could affect the property’s title once purchased, and since there might be claims that are not formally registered, this insurance is critical in providing that layer of protection. It covers situations where someone may unexpectedly show up claiming rights to the property, which were not evident during the sale or ownership transfer, possibly leading to serious legal disputes.

This focus on unrecorded claims distinguishes plain language title insurance from other types of coverage that might address tax claims or claims made by recorded entities, such as lenders. Assessing the risks associated with unrecorded claims is a primary purpose of having title insurance.