Title insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.

Your lender will probably require you to obtain title insurance for their protection. The owner’s policy and the lender’s policy are two different policies. The lender’s policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it.

For a one-time premium, you can be protected as well as the lender. The owner's policy is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy covers the full cost of any legal defense of your title.

There are different types of owner’s policies available. Some of the newer owner’s policies provide protection from defects that occur after the issue date of your policy. Contact us to discuss which type is right for you.