Title insurance provides you with protection against certain losses as a result of problems or issues with the title of your property.

Prior to purchasing a home, the home and the property the home is on almost certainly has changed ownership a number of times. There exists the chance that there is a problem with the chain of title at some point in it’s history. An example of this would be that the property may have had a fraudulent title transfer or there may be unpaid liens against it. By purchasing Title insurance the property will cover the insured for any legal fees and or claims that come from a problem.

Yes. Title insurance usually comes in two varieties: Lenders title insurance, sometimes called a Basic Policy or a Loan Policy, and Owner's title insurance.

• Loan Policy
  • The majority of lenders require a Loan Policy when you get a loan. As the name suggests, the loan policy is based on the amount of loan. It protects your lender's interests in the property in the event that a problem with the title should arise.
• Owners Policy
  • Owner's title insurance is often times issued in the amount of your real estate purchase. The title insurance is purchased for a one-time fee at closing and lasts for the duration of your ownership of the property. That can even be after the insured party has sold the property. Owner's title insurance is the only policy that fully protects the buyer in the event of problems with the chain of title. By purchasing owner's title insurance, you are also insuring against any legal fees that may arise in defending a claim to your title.

Generally speaking yes. If you are going to take out a mortgage to purchase your property then all mortgage lenders will require you to get title insurance. The title insurance will last for the life of the loan and the coverage protection is generally up to the amount of the loan. Similar to mortgage insurance, the coverage protects the lender but you, the consumer will pay the upfront cost.