Title insurance is one of the more expensive items you pay for in a purchase and/or refinance transaction. The title company performs a detailed and comprehensive search to determine if any person or entity may have an interest in the property. The title insurance premium you pay (a one-time fee paid through closing costs in your purchase and/or refinance transaction) is your insurance against any person or entity attempting to claim interest in your property.
Essentially, title insurance is what provides you with clear title to your home. There are two title insurance policies: one is an Owner’s Policy and the other is a Lender’s Policy. The Owners Policy is issued at the time you purchase your home and covers you for the life of your ownership of the property (and it passes along to your heirs in the event of a death). This policy is specifically for your benefit. The Lender’s Policy, in contrast, protects the lender’s interest in the property, specifically up to the amount the lender has loaned for your purchase or refinance.
Click here for a concise Guide to Title Insurance flier written by Old Republic Title Company.
In addition, Dawn Thomas of The Dawn Thomas Team, Inc. provides a flier regarding Title Insurance to her buyers and sellers. It has some additional information to help provide you with a greater understanding of title insurance: Dawn Thomas_What Is Title Insurance
