Title Insurance

An Overview

What Is Title Insurance?

Title insurance is an insurance policy that provides peace of mind relating to one of the largest purchases most people ever make – their home. It is a one-time insurance policy that protects the buyer of a property from title defects. In most cases, this policy is purchased as part of the process of buying a home and remains in force for as long as you or your heirs hold an interest in the property.

Types of Title Insurance

Lender's Title Insurance

This is, as the name suggests, a policy for lenders and provides no coverage to the homeowner. This type of policy ensures that the lender has a valid, enforceable lien on the property for which they have provided funding. Most lenders will require this type of policy to ensure they have protection on the investment they have made.

Homeowner's Title Insurance

This policy benefits the purchaser of the property. It protects the buyer from covered title defects that existed prior to the issuing date of the policy.

How Does Title Insurance Protect The Buyer?

Title insurance provides protection for homeowners in a number of ways.

As part of the title insurance process, a thorough title search is completed to identify any potential title defects. This can uncover potential issues before they become your problem.

If a title defect arises after the purchase, the title insurance policy provides protection from the costs, legal fees, and expenses of defending against any title defect covered by the policy.

If you decide to sell your property, your title insurance policy can protect you from financial loss if the sale falls through due to an issue arising from a covered title defect in your property.