Why call it insurance?

Even the most intensive search cannot avoid claims.

Suppose there are back taxes owed on a property. We go into the local courthouse, review the tax files, and find no evidence of these back taxes because a file is missing. We then insure the property and the tax claim pops up. We pay 100% of that claim.

Without title insurance, the owner must pay claims like these. Liens, unpaid taxes, and sewer and water are assessments are attached to the property - not to the person incurring the delinquency. If a previous owner had a judgment against his property, the new owner is responsible for payment. We insure against these circumstances.