Even the most extensive search done by a title search form cannot avoid claims.
Scenario: Suppose there are back taxes owed on a property that you are purchasing, unbeknownst to you. We had gone into the local courthouse, reviewed the tax files, but found no evidence of back taxes owed, due unfortunately, to a file is missing. We insured the property. Should the tax liability claim pop up at a later date, we pay 100% of that claim. If you did not have title insurance, you would be liable and have to pay the claim.
Without title insurance, the owner must pay claims like these. Liens, unpaid taxes, sewer and water bills, are assessments are attached to the property – not to the person incurring the delinquency. Therefore, if a previous owner had a judgment against his property, the new owner would become responsible. We insure against these circumstances.