What is a Title Insurance?

A title insurance is a type of insurance that protects homeowners and lenders against any damage or loss that may occur due to judgments, liens, or other issues in the title to the property. It helps protect in event of claims regarding legal ownership of a property, so if anything arises after the purchase of a property, the Title Insurance will cover any fees. This insurance is different than other types of property insurances you could get such as fire insurance.

Title Insurance Coverage

There are a variety of issues that could arise that would mean result in costs and fees that the Title Insurance would be able to cover. Some of these issues include

  • Filing errors
  • Liens
  • Inconsistent wills
  • Title forgeries
  • Back taxes

When it Opens

A Title Insurance is purchased at the same time as the escrow is opened. If a lender is involved, the Title Insurance should be required to protect against possible defects, however in cases when there is no loan, it can still be beneficial for all parties involved to purchase a Title Insurance. Your Escrow Agent or lender will be able to open the title order and the title search will begin with the Title Officer.

Types of Title Insurances

There are two types of Title Insurances you can get, either a lender’s Title Insurance or buyer’s Title Insurance. Both cover the same items however they cover different parties. Depending on your Title Insurance policy and provider, the cost can range from $500 to $3,500. In addition, if you are buying a home in cash, meaning you don’t require a Title Insurance, you can ask for a warranty of title which will prove you are the sole party who owns and can sell the home.