Title insurance offers financial protection against problems which could develop as a result of defects in the chain of title, or outstanding liens or judgments that could jeopardize your investment.  Title insurance pays the cost of defending against any covered claim.

There are two types of Title Insurance. Your lender likely will require that you purchase a Lender's Policy. This 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.

An Owner's Policy on the other hand is designed to protect you from title defects that existed prior to the issue date of your policy. 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. The seller generally pays for the Owner's Policy.

How much does Title Insurance cost?
The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you, or your heirs, own the property.