If we knew what Hidden Risk looked like, we wouldn’t let him in the door. The truth is, he comes in many different forms. If you own a home, Hidden Risk to your ownership could come as an error in recording at the courthouse, he could be the scratch of forgery, the invisible color of an overlooked document on a title search or the guise of an undisclosed heir of a previous owner. Hidden Risk can wear a legitimate lawsuit, or be clothed in fraud. Regardless of appearance, if Hidden Risk shows up at your doorstep, he’s your responsibility.
Hidden Risk can be an expensive guest, especially if you have to foot the hospitality of a defense lawyer yourself. However, if you have title insurance, that policy will pay for all your legal expenses related to the threat of Hidden Risk.
You can’t prevent Hidden Risk from walking up to your door, but with title insurance you can keep him from entering your finances.