What is Title Insurance and Why Do You Need It?
Discover how title insurance protects homebuyers from ownership disputes and hidden liens that could cost thousands.
Protecting Your Biggest Investment
When you purchase a home, title insurance protects you from financial loss due to defects in the title that existed before you bought the property.
What Title Insurance Covers
Title insurance can protect you against:
- Errors in public records - Mistakes in deeds, mortgages, or other documents
- Unknown liens - Unpaid taxes, HOA fees, or contractor bills
- Illegal deeds - Forgery, fraud, or deeds by persons of unsound mind
- Missing heirs - Unknown heirs who claim ownership
- Boundary disputes - Incorrect surveys or property line disputes
Two Types of Title Insurance
Owner’s Policy
Protects the homebuyer and typically lasts for as long as you or your heirs own the property. It’s usually purchased at closing and is a one-time fee.
Lender’s Policy
Protects the mortgage lender and is usually required if you’re getting a loan. It only protects the lender’s interest, not yours.
The Title Search Process
Before issuing a policy, the title insurance company conducts a thorough title search to:
- Review public records for the property
- Identify any liens, encumbrances, or defects
- Resolve issues before closing
- Ensure clear title transfer
Cost and Coverage
Title insurance is a one-time premium paid at closing. Unlike other insurance, there are no monthly payments, and coverage lasts as long as you own the property.
How to Choose a Title Insurance Company?
Many companies offer a wide range of coverage options, ideally you want one that offers:
- Fast, comprehensive title searches
- Clear communication about any issues found
- Competitive pricing
- Easy online payment options
Don’t need title insurance policy? Contact us today to learn more.