About Title Insurance

Most homeowners assume that once the closing is complete and they have a signed deed to their new property that it belongs to them. Period. This is not necessarily true. Title insurance offers the property owner true peace of mind. If an owner’s policy is purchased, it insures against errors in the title search by offering financial protection if a claim arises.

Even the most ardent search to review the property can miss certain issues. If a document was not publicly recorded or if there was fraud related to a document, the owner’s policy will cover the potential liability associated with these defects and protect the property owner. The emphasis of title insurance is simply to eliminate risk for the owner. Title insurance is distinctly different than most other insurances because it protects against prior events rather than future.

There are two primary types of policies: Owner’s and Lender’s

Owner’s Policy: This protects the owner of the property against any future claims or defects in the property. The policy coverage is based on the purchase price or fair market value. The coverage is good for as long as you or your heirs own the property.

Lender’s Policy: This protects the interest of the lender to insure they are first in line to the property if there is a default in repaying the loan. This coverage decreases as the loan is paid off.