When you buy a home, you receive a title to the property, meaning you are now the full legal owner of that
property. Title insurance for real estate provides protection against loss if a covered defect is found in the title to
real property. You can purchase it for a one-time premium, paid in most cases at closing.

Title insurance usually covers four types of "hidden" risks: errors, liens, ownership claims, and invalid deeds. If a
claim is made against your property, the title insurance company will negotiate with the other party to settle the
claim, defend you in court if necessary, pay any incurred legal costs, and satisfy any covered claims. Having title
insurance can save you time, money, even your home.

Many parcels have covenants or restrictions that run with the land.  If there is a "reversionary clause" in the
document which established the covenant or restriction, then a violation could cause ownership of the property to
"revert" to a prior owner.  Additionally, if a lien (such as a tax lien, mortgage, or mechanic's lien) is attached to the
property and has not been satisfied, then YOU are purchasing the property subject to the lien.  You could actually
pay for the property, and then lose it in a forced sale to satisfy the lien.

Typical hazard insurance covers a loss from the date of the policy forward in time.  In other words, the insurance
company will not pay for a loss that occurred prior to the issuance of the policy.  There is no need to buy fire
insurance for a home that has already burned.

However, title insurance covers actions which have occurred PRIOR to the issuance of the policy.  Many situations
occur, particularly in rural communities, which affect the title to the parcel.  What if all of the heirs of a deceased
property owner did not sign a prior deed?  What if the parcel was purchased at a tax sale?  What if a lender failed
to release a mortgage?  What if . . . . . ?  The job of Johnson County Abstract Company, as an agent of Attorneys'
Guaranty Title Fund, is to insure property owners against the inherent risks associated with the purchase of real
estate.  A one-time fee guarantees your protection.

Johnson County Abstract Company has been in business for over 100 years.  In most cases, the title search is less
expensive and more complete than those of competitors because the title company is in possession of thousands of
abstracts of property located within Johnson County.

Do you need title insurance?  Well, do you need fire insurance?  If your home never burns, then possibly the
answer is no.  But knowledge of a clean title provides security and peace of mind.  

Lenders require title insurance in almost every case.  Should you be less protected?  Possibly the most expensive
purchase you will ever make is that of your land.  Isn't the purchase worth insuring?
Do I need title insurance?