I spent this morning at a class on title and escrow. To illustrate the value of title insurance, Lisa Umbelino from CW Title offered this attention-getting case study:
A homeowner has huge windows facing the neighbor’s backyard. Shortly after she moves in, the neighbor builds a deck in said yard, and begins using it for hot-tubbing in the nude. The homeowner looks into building a fence. In the process, she discovers that the neighbor’s deck encroaches upon her lot by 5 feet. She mentions this to the neighbor, who ignores her. She then calls her title insurance company, who persuades the neighbor to modify the deck rather than face a lawsuit.
You might not realize that title insurance protects homeowners against any future encroachments that may arise, but it’s true! And the protection lasts as long as the homeowners OR their heirs hold title.