Very simply, title insurance protects against financial loss and related legal expenses in the event there is a defect in the title to your property that is covered by the policy.  Title searchers and examiners will thoroughly review the property history and seek to eliminate title issues prior to closing.  The premium for title insurance is paid one time, at closing.  There are essentially two types of title insurance policies, an Owner’s policy and a Lender’s policy.  The Owner’s policy serves to protect you from covered title defects that existed prior to the issue date of your policy.  If a valid claim is filed, that policy subject to stated terms and conditions will cover financial loss up to its face amount.  A Lender’s policy provides no coverage to the homeowner and only insures that your lender has a valid enforceable lien.  Lenders require that a borrower purchase this type of coverage for them to protect their investment in your Mortgage.

We would be happy to discuss these coverages in detail as they relate to your specific real estate transaction.