Title insurance insures against loss sustained by an insured due to the condition of title being other than as insured. The beneficiaries of title insurance policies generally are real estate buyers and mortgage lenders. A title insurance policy protects the named insured against title defects, liens and encumbrances existing as of the date of the policy and not excepted from coverage. For a one-time premium, the policy remains in effect until the property is sold or refinanced.

A title insurance policy provides you with peace of mind. It takes the risk out of acquiring property whose legal history is unknown to you. While there should be no risks in transferring property, they do exist. Through the years, your new property may have changed hands many times through sale, inheritance, foreclosure, or bankruptcy. Each transfer was an opportunity for an error in title to arise. If an error occurred, and has never come to light, it puts your title in jeopardy. You could lose your property and the money you paid for it. And, even if you successfully defend your rights of ownership, the cost in time and legal fees could be prohibitive. In addition to searching the public records to discover risks, some of the other risks that are assumed by the title insurance policy are:

• fraud
• forged documents
• undisclosed or missing heirs
• clerical errors in public records
• confusion from name similarity

and many others.

The experience of our title personnel is one of the qualities which sets us apart. Whether you are dealing with a sale or loan on residential property, a commercial transaction or are in need of a guarantee for legal proceedings, First American is ready to serve.

For additional information, please contact one of our offices by clicking on the office directory.

First American routinely issues two types of policies - "owner's" which covers you, the homebuyer; and "lender's" which covers the bank, savings and loan or other lending institution over the life of the loan. Both are issued at the time of purchase for a modest, one-time fee.

Before issuing a policy, however, First American performs an extensive search of the public records to determine if anyone other than the party selling the home has an interest in the property. With such a thorough examination of records, any title problems usually can be found and cleared up prior to your purchase of the property. Once the title policy is issued, if for some reason any claim which is covered under your title policy is ever filed against your property, First American will pay the legal fees involved in defense of your rights, as well as any covered loss arising from a valid claim. This protection, which is in effect as long as you or your heirs own the property, is yours for a one-time premium.

The fact that First American works to eliminate risks before they develop makes title insurance much different than other types of insurance you may have purchased. Most forms of insurance assume risk by providing financial protection through a pooling of risks for losses arising from an unforeseen future event, like a fire, theft or accident. The philosophy of title insurance, on the other hand, is to eliminate risks and prevent losses caused by defects in title that happened in the past. Risks are examined and mitigated before property changes hands.

This risk elimination has benefits to both you, the homebuyer, and to us as the insurer; it minimizes the chances that adverse claims might be raised, and by so doing reduces the number of claims that have to be defended or satisfied. This keeps costs down for First American and your title premium low.

Buying a home is a big step emotionally and financially. When you use First American you are assured that any valid claim against your property will be borne by us, and the odds of a claim being filed are slim indeed.

Isn't sleeping well at night, knowing your home is yours, reason enough for a title insurance policy from First American Title Insurance Company?