Do you really own your own home? Or do you face the possibility of finding a bulldozer instead of a newspaper on your doorstep one day? You probably have title insurance, but it would be a shock if on the eve of a sale, someone knocked on your door and said he had the right to build a road through the living room because he has a claim on your property. This section will, I hope, convince you of the importance of a title policy.

Title insurance does not insure San Diego homes or condos; home insurance does. A title policy insures the ground on which a house stands, or the ground under the building where an apartment is located. What does it do? Title insurance protects you against a missing link in the chain of title, which could allow someone to knock on your door and say, "My great-grandfather's signature was forged on a deed fifty years ago. Therefore I have an interest in your property." Believe me, without title insurance, such things can happen. With title insurance, if it happens, you are paid the amount for which you have insured your title. Title insurance is the least costly insurance you will ever buy. If you do not intend to use title insurance, you should not be in the San Diego homes market. The nice thing about title insurance is that, as is not the case with health, home, auto or life insurance, you pay only once. The premium is commonly a percentage of the total amount of the insurance. For example, if your title is being insured for $175,000, you will pay less than someone who insures a $500,000 property. It does not hurt to compare two or three companies for title insurance, just as you would when shopping for home insurance. Once you have your title policy, put it in an envelope with a copy of your deed and all your closing documents, mark the envelope "House Papers" and keep it in your safe-deposit box. When you are ready to sell, you can pull out the title insurance and advise your prospective purchaser of the name of the insurer. The company that wrote your policy usually will give a better price to your buyer, since the research has already been done.