We all understand the importance of insurance to protect our homes and vehicles in the event of a loss. Title insurance, while not as well understood as other types of insurance, is just as important. When you purchase a home you are not only purchasing the actual structure and the land it sits on, you are also acquiring the title to the property. Title conveys to you the right to occupy and use the property and is well established as a legal concept. As such, your legal rights as the title holder may be challenged by claims asserted by others. A legitimate title challenge may limit your use of the property and bring financial loss. Title insurance protects you against these challenges.
Unlike insurance that protects your personal property against future events for an annual premium, title insurance protects against loss from unknown or undiscovered defects that already exist in the title and is purchased with a one-time premium.
For more on title insurance and how it protects you, read our FAQ’s
For an explanation of the closing and settlement process, read our Homebuying 101