For Consumers
Understanding title insurance and how it protects your homeownership investment. Find answers to common questions and learn what to expect.
Protecting Your Investment
When you purchase a home, you're making one of the largest investments of your life. Title insurance helps protect that investment by ensuring you have clear ownership rights and protecting you from financial loss due to title defects.
Understanding Title Insurance
What is Title Insurance?
Title insurance protects you and your lender from financial loss due to defects in the title to your property. These defects can include liens, encumbrances, errors in public records, or other issues that could affect your ownership rights.
Why Do I Need Title Insurance?
Title insurance protects your investment in your home. Without it, you could face significant financial loss if someone challenges your ownership or if there are hidden title defects. It provides peace of mind and financial protection.
What Does Title Insurance Cover?
Title insurance covers a wide range of issues including forged documents, undisclosed heirs, recording errors, undisclosed liens, boundary disputes, and other title defects that existed before you purchased the property.
How Much Does Title Insurance Cost?
Title insurance is typically a one-time premium paid at closing. The cost varies by state and property value, but it's generally a small percentage of the purchase price. Rates are regulated in most states.
Frequently Asked Questions
Do I need both owner's and lender's title insurance?
The lender will require lender's title insurance to protect their interest. Owner's title insurance is optional but highly recommended to protect your investment. While lender's insurance protects the lender, it doesn't protect you as the homeowner.
How long does title insurance last?
Owner's title insurance lasts for as long as you or your heirs own the property. Lender's title insurance lasts until the loan is paid off. Both are one-time premiums paid at closing.
What happens if a title defect is found?
If a covered title defect is discovered, your title insurance company will work to resolve it. This may involve legal action, paying claims, or clearing the defect. The insurance protects you from financial loss.
Can I shop around for title insurance?
Yes, you can shop around for title insurance. However, in some states, rates are regulated and may be the same across providers. It's still worth comparing services and coverage options.
Owner's Policy vs. Lender's Policy
Lender's Title Insurance
- Required by most lenders
- Protects the lender's interest
- Coverage decreases as loan is paid
Owner's Title Insurance
- Optional but highly recommended
- Protects your ownership interest
- Lasts as long as you own the property
Quick links
Tools & ResourcesAdditional tools and resources are in development and will be added here as they become available.
Questions? Ask Your Title Pro
Your title company or attorney can answer your questions about title insurance.
"The important thing is not to stop questioning."
— Albert Einstein