WHY DO I NEED TITLE INSURANCE?

For most Americans, our home is the single largest financial investment we ever make.  More importantly, it’s where we raise our families, share time with friends, live our lives.  And while ownership of our home may seem very straightforward, our rights to enjoy our property aren’t always as clear.  There are literally dozens of ways in which your title—and your ownership of—the property can be jeopardized.  The title insurance industry and the policies it provides exist to ensure that title issues don’t affect your home ownership rights.

How does Title Insurance differ from other types of insurance?

Title insurance isn’t like most of the things we Americans buy.  In fact, it’s not exactly a product, but more a process. Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life or health cover you against losses that may occur in the future. It’s different from other kinds of insurance, too, in that the premium you pay just once buys coverage that lasts the entire time you, or your heirs, own your home—whether it’s five years or 105!

IF A LENDER GETS TITLE INSURANCE FOR ITS MORTGAGE, WHY DO I NEED A SEPARATE POLICY FOR MYSELF?

The interests of the lender and the owner in a real estate transaction are substantially different. The lender's policy is written in the amount of the loan. In the event of an adverse claim or a total failure of title, the lender would be covered up to the full amount of its investment—while the buyer would have no coverage at all. Owner’s title insurance will protect the purchaser if a claim is made against the title.  Owner’s title insurance will also pay for any legal fees incurred in defending the claim.  If only lender’s title insurance has been issued, the homeowner would not be covered for legal fees and might lose the property should a problem arise.

If you have any questions or wish to obtain quotes for a title Insurance policy, please contact our Closing Department or Catherine L Blakley.

20 IMPORTANT Reasons Why You Should Have Owner's Title Insurance

For more information on the closing process and title insurance, go to www.homeclosing101.org.

Special thanks to the American Land Title Association, Fidelity National Title Insurance Company and First American Title Insurance Company for their contribution to the above information.