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Title Insurance: What Is It and Why Do You Need It?

What is Title Insurance?

Title insurance protects the homeowner against any title defect that affects your property rights. Property rights include things like being able to freely sell your property, securing the property with a loan, occupying the property, and owning the property free and clear of debts or obligations from prior owners.

Why Should You Have It?

Although your closing attorney will conduct a title examination, there are potential defects that will always remain hidden from the face of any document, like fraud, forgery, incapacity, and impersonation. Title insurance offers coverage against all potential defects. Depending on your coverage, you may even be covered against loss due to boundary disputes, restrictive covenant violations, or encroachment issues. Your lender will always require that you purchase a lender’s title insurance policy? Why? Real estate is a big investment! Your lender’s policy will not protect your interest, only that of the lender. With the potential for loss being so high, a one-time premium paid for title insurance that lasts as long as you hold an interest in the property can be priceless!

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