Title Insurance

Title insurance protects property owners and lenders from financial loss due to defects in a property's title that weren't discovered during the title search.

Two Types of Title Insurance:

Lender's Title Insurance:

• Required by mortgage lenders
• Protects the lender's investment
• Coverage decreases as loan is paid
• Buyer typically pays for this

  Owner's Title Insurance:

• Optional but strongly recommended
• Protects your ownership rights
• Coverage lasts as long as you own the property
• One-time premium at closing

  What It Covers:

• Unknown liens or encumbrances
• Errors in public records
• Forged documents in title history
• Undisclosed heirs claiming ownership
• Boundary and survey disputes
• Fraud and forgery

  What It Doesn't Cover:

• Issues you knew about before purchase
• Problems arising after purchase
• Zoning issues
• Environmental hazards

  How Claims Work:

If a title issue arises, the title company: 1. Investigates the claim 2. Defends your ownership in court if needed 3. Pays covered losses up to policy limits

Cost: One-time premium, typically 0.5-1% of purchase price. Paid at closing.