What Is It?

Title Insurance is an insurance policy that provides coverage for damages incurred and legal fees in the event of an adverse claim affecting ownership to real estate.  A Lender's Policy provides coverage to lenders and an Owner's Policy provides coverage to the individual property owner in the event a title defect is discovered in the future.

What Does It Cover?

The title insurance policy would cover claims resulting from forgeries in the public records, filing clerk errors, deeds extended under duress, and numerous other "hidden defects" undetectable by the closing attorney's title examination.

What Does It Cost?

For example, the cost of the title insurance policy is based on the amount of coverage provided. An owner's policy on a home with a purchase price of $250,000.00, issued simultaneously with a lender's policy securing a loan in the amount of $200,000.00, would cost approximately $550.00.

How Do I Buy It?

An individual placing a mortgage on property is usually required to purchase title insurance by the lender. This policy is known as the "lender's" policy. An "owner's" policy can be purchased simply by requesting this coverage from the closing attorney at or before the closing.