Buying a property is a significant investment, and you want to be sure you have clear ownership of the property you're purchasing. That's where title insurance comes in. This article explains what title insurance is and why it's essential:

• What is Title Insurance? Title insurance is a type of insurance that protects you from financial loss due to defects in the title of your property. These defects can be hidden and may not be discovered during a standard title search.

• Types of Title Defects: Title defects can include things like:

  • Errors in public records

  • Forged documents

  • Undisclosed liens or mortgages

  • Claims by previous owners

  • Boundary disputes

• Owner's Policy vs. Lender's Policy: There are two main types of title insurance: an owner's policy, which protects the buyer, and a lender's policy, which protects the lender's financial interest in the property. It's highly recommended that buyers purchase an owner's policy.

• The Title Search: Before issuing a title insurance policy, the title company will conduct a thorough search of public records to identify any potential title defects.

• Coverage: Title insurance covers the costs of defending against title claims and can also cover financial losses if a title defect is discovered.

• One-Time Premium: Title insurance is typically a one-time premium paid at closing.

• Importance of Title Insurance: Title insurance provides peace of mind and financial protection against hidden title risks that could jeopardize your property ownership.

Protecting your property investment with title insurance is a smart decision. It's a relatively small cost compared to the potential financial losses you could face if a title defect arises.