Understanding Title Insurance

title insurance

When you purchase a home, you are investing in one of the most important assets you will ever own. Title insurance protects your ownership rights to this valuable investment.

What is Title Insurance?

Title insurance protects you from fraudulent claims against your property and from errors made in previous sales transactions. It ensures that you have clear and unencumbered ownership of your home.

Who Pays for Title Insurance?

In some states, it is customary for the seller to purchase title insurance on behalf of the buyer. However, in other states, it is the buyer’s responsibility.

Why is Title Insurance Required by Lenders?

Mortgage lenders require title insurance to protect themselves from any title defects that could affect their investment in your mortgage. Title defects include:

  • Mistakes in property records
  • Forged or fraudulent documents
  • Liens or encumbrances not disclosed in the title search
  • Claims from unknown parties

Two Types of Title Insurance Policies

There are two types of title insurance policies available:

Lender’s Title Policy: Protects the lender’s investment in the mortgage.
Owner’s Title Policy: Protects the homeowner’s ownership rights up to the purchase price of the property.

Your Right to Choose a Provider

You have the right to choose your own title insurance provider. It is important to shop around and compare rates and coverage from different companies.

Considerations When Choosing a Provider

  • Hidden fees and charges
  • Eligibility for discounts
  • Favorable Financial Stability Rating from Demotech Inc.


Title insurance is a crucial investment that protects your ownership rights to your home. It ensures that you have peace of mind knowing that your property is free from any encumbrances or claims that could jeopardize its value or your investment. By carefully selecting a reputable title insurance provider and choosing the appropriate policies, you can ensure the long-term security of your home.