What is Title Insurance and Why is it Necessary?
To put it simply, title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in title to your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention, rather than risk assumption. With title insurance, title examiners review the history of your property and seek to eliminate title issues before the purchase occurs.
What is a Title Search?
A title search is an early step in the home buying process to uncover issues that could limit your rights to the property. Typically, if a title issue is discovered your title professional will take care of it without you even knowing. After the title search is complete, the title insurance agent can provide a title insurance policy.
Do I need Title Insurance?
Absolutely. Title insurance is a way to protect what is likely your largest investment—your home. An Owner’s Policy provides peace of mind that your title company will stand behind you if a covered title issue or defect arises after you have bought your home.
What Does Title Insurance Cover?
Any number of title issues may arise, even after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. The one time premium for title insurance protects you from covered title defects and will cover financial loss up to the face amount of your policy.
How Much Does Title Insurance Cost?
The one-time premium that you’ll pay for a title insurance policy varies by state, but generally is related to the value of your property. You can use our Rate Calculator to estimate how much your title insurance policy may cost.
What’s Owner’s Title Insurance?
An Owner’s Title Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover financial loss up to the face amount of your policy.
What’s Lender’s Title Insurance?
A Lender’s Policy provides no coverage to the homeowner. A Lender’s Policy insures that your lender has a valid, enforceable lien on your property. Most lenders require borrowers to purchase this type of insurance policy to protect their investment.
