Talking about title insurance can sometimes seem like a snooze, which can lead to folks brushing past the topic in their closing or not taking the time to research and purchase the best Owner’s Policy for their new place. But wait! Did you know that Abraham Lincoln lost his home (twice!) due to a title issue? Title insurance is a key facet of protecting one of the biggest investments of your life. Check out this little parable from our friends at the American Land Title Association for a historic story on how title insurance protects your property rights!
Honest Abe Lost His Home—Twice
Abraham Lincoln was born in a one-room cabin in Kentucky. His father paid $200 for the cabin and 300 acres. It wasn’t much, but it was home. However, the Lincolns didn’t have the right papers and someone else had a better claim to the land.
At the age of three, Abe’s family packed up and moved. Four years later, Lincoln’s father had to go to court to prove ownership rights again. Abe’s father, Tom, won the suit, but moved his family to Indiana due to the fear of losing another property due to title issues.
The Lincoln’s losses would have been covered had Tom purchased an owner’s title insurance policy.
The same potential flaws in title exist today. A home is the largest purchase most of us make in our lifetime.
Make sure you purchase an owner’s policy and protect your investment. The option of not purchasing a policy can be devastating.