Get Answers to Your Title Insurance Questions

Title insurance protects you and your lender from financial loss due to defects in the title to your property. It covers issues like liens, encumbrances, or ownership disputes that may arise after your purchase. This protection is crucial for safeguarding your investment in real estate.

A title is the evidence of right that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use.

Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These hidden 'defects' are dangerous because you may not learn of them for many months or years. Yet they could force you to spend substantial sums on a legal defense, and still result in the loss of your property.

Not necessarily. There are two types of title insurance. Your lender likely will require that you purchase a Lender's Policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it. An Owner's Policy, on the other hand, is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk.

The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.

Title insurance covers various risks including: undisclosed liens, forged documents, undisclosed heirs, recording errors, and other title defects. It provides financial protection against claims that could threaten your ownership rights to the property. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy covers the full cost of any legal defense of your title.

Lender's title insurance protects the mortgage lender's interest in the property, while owner's title insurance protects your ownership rights. While lender's insurance is typically required, owner's insurance is optional but highly recommended to protect your investment.

Title insurance coverage lasts for as long as you own the property. Unlike other types of insurance that require regular premium payments, title insurance is a one-time payment that provides lifetime coverage for your ownership rights.

A title search involves examining public records to verify the property's legal ownership and identify any liens, encumbrances, or other issues that might affect the title. This process helps ensure a clear title before the property transfer.

No, title insurance policies are not transferable. Each new owner needs their own title insurance policy. This is because title insurance protects the specific owner who purchased the policy.

If you discover a title defect after purchase, contact your title insurance company immediately. They will investigate the claim and provide coverage according to your policy terms. This is why having title insurance is crucial for protecting your investment.