Title Insurance: A shield Against Adverse Possession

As a real estate investor, the doctrine of adverse possession can cause you an ordeal. What happens if the claims of adverse possession win? Having title insurance, you can be compensated.

Title Insurance: A shield Against Adverse Possession
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Imagine losing your family land to adverse possession? The frustrations, the unending quest of trying to reclaim the land, and the dying hope that accompanies the ever stretching procedures become a norm as every flicker of light fades away in the quest to reclaim it.

I know of a family that went through frustrations after losing their land through adverse possession. A whole 200 acre of land which they had been gifted a few years back, had been left vacant since they had no money to make use of it. They were left with nothing since they had nothing else to do to recover the land. Had they known about title insurance, they would have been in a position to be compensated for their loss.

Title insurance is an insurance policy that protects real estate owners against property loss or damage they may experience due to hindrance or defects in the title to the property. Unlike other insurance policies, title insurance insures against events that occurred in the past of real estate property and its owners. Claims of ownership through adverse possession can be protected by title insurance.

Losses that arise when someone claims your property can be insured against by title insurance. It can also cover the legal costs of defending the adverse possession claim. However, title insurance cannot cover losses of structures that were built on the land.