Does Title Insurance Cover Property Line Disputes?

Does Title Insurance Cover Property Line Disputes?
Title insurance can cover property line disputes, but it depends on the specific policy and circumstances. Most policies protect against issues with ownership, liens, prior encumbrances, or judgements against the property.
Some policies cover boundary disputes if a survey error or unknown encroachment causes the issue. However, standard policies often don’t automatically cover boundary disputes.
If you are wondering what in God’s name is title insurance, here’s what you need to know:
Title insurance is an essential part of any real estate transaction that involves a transfer of ownership. Its main purpose is to protect buyers and lenders from potential ownership disputes that may arise after the purchase.

In cases where multiple parties claim ownership of a property, the sale cannot proceed until the rightful owner is legally determined. Title insurance provides financial coverage in these situations, ensuring that the buyer or lender is protected against potential legal costs, fraud, errors in public records, or undisclosed liens that could affect the ownership status.
Without title insurance, a buyer could risk losing their investment if an unexpected claim arises. That’s why lenders often require it before approving a mortgage, ensuring that the property has a clear and undisputed ownership history before the transaction is finalized.
Think of this as travel insurance; it covers unexpected issues but not specific cases like baggage losses.