Why do I Need Owner’s Title Insurance?

The purchase of property can be the largest and most important investment you will make in your entire life. Owner’s title insurance protects your property from legal claims and eliminates any risk and potential for losses caused by faults in title from events that may have occurred long before you purchased the property.

How is Title Insurance different from Homeowners Insurance?

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 homeowners insurance cover you against losses that may occur in the future. Title insurance does not protect against any future faults.

A title insurance policy will protect you from risks that may arise because of faults or inaccuracies in the chain of title or undiscovered ownership interests in the property. Another difference is that you pay a one-time premium for title insurance.

What does owner’s title insurance cover?

Under the owner’s title insurance policy, you are protected against any unforeseeable errors in the title. Common errors include human error, fraud, and forgery.

Who Pays for title insurance?

The question of who pays closing costs and title insurance is a matter of agreement between the buyer and seller. Usually this agreement is based on the customary practice in your area.

How long are you covered?

Your owner’s insurance policy lasts as long as you or your heirs own the property.