Frequently Asked Questions

Unlike auto or home insurance, which protect you against things that might happen in the future, title insurance protects you from things that happened in the past. If you’re purchasing a property, the previous owner may not have known about or disclosed situations that can negatively impact your investment. Title insurance provides you with peace of mind when you buy a house, refinance your mortgage, or handle other real estate transactions. Title insurance comes in two forms: an owner’s title policy, which protects the buyer in a real estate transaction, and a loan policy, which protects the lender.

An owner’s title insurance policy pricing varies depending on the particulars of the property and its location. This one-time fee is paid at closing.

Before purchasing a property, buyers should make sure a reputable title company conducts a thorough title search. This research uncovers any issues with the ownership of the property that could impede the sale or impact the new owner. Depending on the property, a title search can be intensive and complex, requiring expertise about the records and requirements of a state or area. For that reason, title companies are required to be licensed in a state before performing a title search for a property located in that state.

For owners, coverage lasts as long as you or your heirs own or partially own the property. For lenders, coverage lasts until the mortgage is paid in full.

Title insurance protects you from issues or problems with your title that may have occurred before you purchased it. If a seller fails to disclose, or wasn’t aware of, a title problem prior to closing, as the new owner, you are liable for that claim. The consequences could be minor, or cost more than the value of your property. Title insurance gives you peace of mind that, in the event that you discover a title issue that began prior to your purchase, you will be covered.

Your realtor, lender, or closing attorney can walk you through the details for your particular sale. Generally, these transactions take a similar format. The buyer, seller, lenders, and any other associated agents or representatives meet at a scheduled time. All parties sign required paperwork and deeds and mortgages are exchanged. All funds are disbursed, including down payments, closing costs, title insurance, and any other required fees.

Even if you’re buying a property from a trusted friend or family member, that person may not be aware of all of the title issues associated with the house, building, or land. Any time a title problem is deemed to have begun before the sale— whether the previous owner knew about it or not—your title insurance will protect you in ways that your homeowner’s insurance or other insurance policy will not.

A closing disclosure is an official document certifying the details of your mortgage, including monthly fees, and closing costs.

While you will be the first owner of your newly constructed home or building, other people have owned the parcel of land before you or your builder. If any undisclosed or undiscovered liens against the land are found after your purchase, title insurance protects you. Likewise, if your builder fails to pay any contractors or has any judgements levied against them, title insurance guarantees that no one can put a lien against your property.

Homeowners’ insurance protects owners against damage and problems that may happen in the future, after the date the policy begins. Title insurance, on the other hand, protects owners and lenders against title issues that began in the past, before the property was purchased. Because title problems often emerge long after the fact, it’s important for owners’ peace of mind to have both homeowners’ and title insurance.