What Kinds of Title Insurance Are Available? There are two basic title insurance policies, a Lender’s Policy and an Owner’s Policy. The Lender’s Policy covers the bank for the mortgage they have made on your house and land. The Owner’s Policy covers you as owner for as long as you own the house and even after you have sold the property. In North Carolina we have a simultaneous rate, which means that you are automatically entitled to an Owner’s Policy up to the amount of the Lender’s Policy at no additional charge. Of course, you may also purchase additional coverage for an extra fee up to the value of the purchase price of your property. If the Title has been Searched, Do You Still Need Title Insurance? Yes. A title search is a search of the public records and will only reveal what is on the record. For the one time premium that you will pay will offer financial protection against loss from: • Errors in your title examination • Undisclosed or missing heirs • Forged deed, release deeds, leases or wills • Birth or adoption of children after the date of a will • Duress, incompetence or incapacity of any grantor in the chain of title • Property liens from homeowner’s associations • Mechanic’s and material liens • Fraud, forgery or impersonation of any grantor in the chain of title • Instruments executed under an invalid or expired power of attorney • Mistakes in the recordation of legal documents • Misinterpretations of the marital status of any grantor in the chain of title • Errors in the tax records • Invalidation (avoidance) of your deed by a bankruptcy court • Deeds made by minors in the chain of title • Deeds executed under expired or improperly executed powers of attorney • Lack of Access to your home These are just a few of the kinds of problems that may remain undisclosed after even the most meticulous search of public records by your attorney. These hidden “defects” are dangerous because you may not learn of their existence for months or years after you have made your purchase. An Owner’s Policy of title insurance will protect you against losses from these hidden defects including paying for a legal defense, curing your title and satisfying liens or judgments against your title.