What is title insurance?

Title Insurance is a policy of insurance that insures or indemnifies against loss or damage suffered by owners of real property or by others interested therein by reason of liens, encumbrances upon, defects in or the unmarketability of title to such real property.

There are two different types of title insurance: the owner’s policy and the lender’s policy. The owner’s policy is purchased by the homebuyer or property owner. Where a Lender is involved, the Lender will almost always require a Lender’s title policy which only protects the Lender’s interest in the property.

Why do I need title insurance?

A home is probably the single largest investment that you will make in your life. Since you insure everything else that’s valuable to you—including your life, your health, your car -- why not also insure your largest investment? Every year, the vast majority of homebuyers in America elect to protect the largest investment of their lives, and purchase owner’s title insurance.

No homebuyer or property owner wants to inherit existing debts or legal issues that could interfere with their property rights in the future or might even cause them to lose their property. If you are buying a home, there are many hidden or unforeseen issues or defects that might arise only after you have purchased your home, including unpaid liens, clerical errors, claims of fraud or forgery, just to name a few. Purchasing an owner’s title Insurance policy is the best way to protect yourself from unforeseen legal and financial claims and discrepancies which might affect your rights to your property.

What does title insurance cost?

The premium for title insurance is based upon the total value of the transaction and is paid only once. And, the original premium payment is the only one ever required; there are no renewal premiums.

The cost for a title insurance policy is typically in the range of 0.5% of the purchase price of the property and is thus a very good value for the benefit it provides. Moreover, the policy protects the interest of the insured throughout the entire period of ownership and has no specified expiration date. It continues to protect the insured and the heirs of the insured as long as they have an interest in the property.

The foregoing are only some of the most frequently asked questions concerning title insurance. If you should have any other question, or if we may assist you in any other way with your real estate needs, please be sure to contact us.