1. What is title insurance?

Title insurance protects buyers and lenders  with protection, up to the coverage limit of the policy, from losses resulting from defects and/or errors in the title when there is a transfer of ownership.

Properties have long histories that stretch back decades. Title insurance, unlike insurance policies that protect you from future events, protects you from errors or omissions that may have occurred in the past.

2. What does title insurance protect against?

Title insurance protects against hundreds of different kinds of “title defects” that would undermine or alter your ownership the the property.

To reduce the chances of a title defect slipping through, a title search is performed prior to the writing of the title insurance policy.

A title search is a thorough examination of the chain of title and court records to ensure there are no undisclosed heirs to the property who would be able to claim ownership, errors, fraud, unpaid taxes or pending legal actions associated with the property.

Title insurance protects the buyer and lender, up to the coverage limit, from losses should a title defect slip through.

3. Do I need title insurance?

Yes, you need title insurance. It protects the financial investment you have made in the property.

While not required by law, title insurance will be required by almost every lender in order to protect their stake in the property.

4. How much does title insurance cost?

The cost of title insurance varies depending on the purchase price of the property. Generally, a policy costs about 1 percent of the purchase price.

 

5. How long does title insurance last?

A title insurance policy lasts as long as you have an interest in the property. Unlike other insurance products, title insurance only requires one payment.

6. What’s the difference between a title commitment and a title policy?

A title commitment comes before the real estate closing. The commitment is when the title company commits to issue title insurance if certain conditions are met. The title policy provides the actual coverage.

 

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