The Purpose of Title Insurance

The president of Leader Settlement Services, LLC, James J. Vassallo Jr. holds a BBA from Temple University. In his executive capacity as Leader Settlement Services’ president, James J. Vassallo Jr. examines public records, reviews title searches, and prepares title insurance commitments.

Both real estate owners and lenders are protected by title insurance against loss or harm caused by liens, encumbrances, or flaws in a property’s title or real ownership. Unlike typical insurance, which covers claims for future events, title insurance covers claims for past events. A standard owner’s title insurance coverage generally covers defects in recordation, ownership by a third party, unregistered easements, erroneous signatures on documents, and pending litigation.

Even the most experienced title search business or specialist might occasionally miss something. Mistakes can occur, and these errors can be costly if a buyer discovers a problem with the property after the transaction has been completed. As a result, purchasers almost always acquire title insurance to protect themselves from financial loss if a title problem occurs during or after the transaction.