Title Insurance Q & A

What is Title Insurance?
Title Insurance is protection against loss arising from claims connected to the title of your property. Prior to you purchasing your home there may have been several transfers of ownership. Some examples of claims that maybe attached to the property are: Recording Errors, Unpaid Taxes, Missing Heirs, Liens, Forged Signatures, Fraud, etc. Title Insurance covers the insured for any claims and legal fees that may arise therein.
 

Is purchasing Title Insurance mandatory?
It is when obtaining a mortgage, since mortgage lenders require such protection for an amount equal to the loan.
 

What are the different types of Title Insurance policies?
There are two basic forms of Title Insurance--an Owner's Policy and a Lender's Policy. The Owner's Policy covers the land owner.  The Lender's Policy covers the lender until the loan is satisfied.
 

If a Lender's policy is issued, why do I need an Owner's Policy?
A Lender's Policy offers no protection to the land owner. A claim may arise that does not jeopardize the lender's interest, but may, in fact, cause a great loss to the owner.
 

How long am I protected under an owner's policy?
Forever; you and your heirs are protected for as long as you or your heirs own the property.
 

How much does it cost?
Fees vary from state-to-state, but in all cases it is a one-time cost that doesn't have to be renewed unlike other forms of insurance.