What is Title Insurance?

Buying a house is very exciting however, it can be confusing as well. Things feel like they are happening pretty fast and, often, some important things can go unexplained – like title insurance. Many people do not understand exactly what title insurance is or what it does, even a lot of people that already have it. We have put together some basic information for you below.

What is title?


Simply stated, the title to a piece of property is the evidence that the owner is in lawful possession of that property.

What is title insurance?


Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or the defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions.

How does title insurance differ from other insurance?


Insurance such as car, life, health, etc. protects against potential future events and is paid for with monthly or annual premiums. A title policy insures against events that occurred in the past of the real property and the people who owned it, for a one-time premium paid at the close
of the escrow.

What does it cover?


Title insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the actual policy.