What is Title Insurance?

A home is the largest investment that most of us will make in our lifetime. One question that homebuyers often have is “what is title insurance” and “should I buy title insurance.” We answered a few questions below to help you understand how title insurance works.

What is a title?

A title is your ownership right to your property.

What is a tile search?

A title search is a standard part of the home buying process that is conducted to uncover issues that could prevent your right to the property. Your closing agent reviews public records to see if there are problems or defects that could cause you legal issues.

Owner’s Policy

This type of title insurance protects your property rights for as long as you own the home.

Lender’s Policy

This type of title insurance is usually required by the lender and protects only the lender’s financial interests. The buyer typically pays for this policy, but this varies depending on where the home that you are purchasing is located. Check with your Realtor or closing agent to see how it is handled in your area. 

Should I purchase Owner’s Title Insurance?

Purchasing owner's title insurance can be a smart decision because it’s the best way to protect your property from future legal claims.

What does Owner’s Title Insurance cost?

The one-time payment for owner’s title insurance is low relative to the value of your home. The typical owner’s title insurance policy costs around 0.5% of the home’s purchase price.

How long does Owner's Title Insurance cover me?

Your owner’s insurance policy lasts as long as you or your heirs own your property.