What is Title Insurance?

Title Insurance is an insurance policy to guarantee your ownership against claims, liens or judgments that might arise after your purchase or loan has been completed. As your title insurance provider, we research and certify ownership of real estate before it is bought, sold or refinanced. We notify you and your attorney or lender of any claims that may challenge your ownership of the new loan on the property.

There are two types of Title Insurance: Lender’s Coverage and Owner’s Coverage. Lender’s Coverage is required by most mortgage lenders. It insures the lender’s interest against title defects and it protects the lender should the lender become the owner of the property through foreclosure.

Owner’s Coverage protects you, the property owner, from defects in title, as even a minor defect can be costly to correct. Both types of coverage are paid for with a one-time premium, and protects the lender throughout the life of the mortgage and protects the owner for as long as you own the property.

Its important to have title insurance as even with the most careful title search before closing, potential title problems, called hidden risks, may turn up months, or even years, after you purchased the property. These hidden risks can result in costly law suits and even loss of property. In the event of such problems surfacing, the Title Insurer will defend claims at no cost to you.

Some hidden risks are;
• Previously undisclosed heirs of previous owners
• Deeds made by minors
• Deeds made by persons of unsound mind
• Title taken as a result of an improperly probated will
• Forged deeds or mortgage releases
• False representation of the true owner of the property

Why do I need Title Insurance?

To protect the major investment you are making in buying a home. A lender minimizes the risk in lending money by checking the buyer’s credit as an indication of his/her ability to repay a loan. Then, the lender makes sure that the quality of the title to the property a borrower is about to buy, and which the borrower will pledge as security for the loan, is satisfactory. The lender does this by obtaining a lender’s policy of title insurance.