Escrow & Title

A NH title company discovers that a prior deed in the chain of title was forged. Owner's title insurance would typically:

ANot cover forgery as it is a criminal matter
BCover the loss resulting from the forged deed, defending the insured's title✓ Correct
COnly cover forgery if committed by the seller
DRequire the insured to first sue the forger before making a claim

Explanation

Owner's title insurance covers losses resulting from title defects, including forged deeds in the chain of title. The title insurer would defend the insured's title in court and compensate for losses up to the policy amount. This is one of the key protections title insurance provides.

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