Most of us wonder...  What is Title Insurance?  What does it cover?  Why does my client have to have it?  Here is some information on a few policy's for the State of Arizona and what they cover....  (This info is general and can vary between companies.) 

STANDARD POLICY COVERAGE

· Someone else owns a recorded interest in your title

· A document is not properly signed, sealed, acknowledged or delivered

· Forgery, Fraud, duress, incompetency, incapacity or impersonation

· Defective recording of any document

· Unmarketability of title

· Lack of right of access to and from the land

ALTA RESIDENTIAL COVERAGE ABOVE ITEMS PLUS:

· Mechanic's lien protection for work or materials done prior to the policy date except where the insured has agreed to same

· Unrecorded liens by the HOA

· Others having rights arising out of leases, contracts, or options

· Someone else has an easement on the land

· Forced removal of the residential structure because it extends onto other land or on to any easement, or it violates a restriction shown in Schedule B, or an existing zoning law

· Plain understandable policy language

· Automatic inflation coverage increasing policy amount up to 150%

ALTA HOMEOWNERS COVERAGE  ABOVE ITEMS PLUS:

· Living trust coverage

· Subdivision map act coverage

· Restrictive covenant violations by prior owners

· Enhanced access coverage

· Map inconsistency protection

· Post policy encroachment / post policy forgery

· Building permit/zoning violations by prior owners

If you have any questions about the title insurance in your area, contact your local Title Company for a list of coverages.   Hope this helps to understand Title Insurance a little better!  :)