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Title insurance is an insurance policy that covers you if title problems come up after you buy or refinance a property. The possible complications that cannot be discovered through even the most thorough title search, include lost, forged or incorrectly filed deeds.

For example, if an unknown heir makes a claim on the property you just bought, you may be held responsible for it. Without title insurance, you might have to pay the legal costs to settle a dispute. So, If you lose a dispute, it could cost you money, the equity you have in your home and perhaps even the ownership. Title insurance is designed to cover the associated legal costs to settle the dispute and/or to resolve the problems.

A title insurance policy is used to protect yourself from the risks or undiscovered interests. Once purchased, the title insurance remains in effect for as long as you own your property. Title insurance adds security and peace of mind to home ownership.

There are two principal forms of title insurance: they are:

1. The lender's policy
2. The homeowner's policy

Why do I need title insurance?

You may have heard or know the benefit of a car insurance and homeowners insurance, but chances are there that you’ve never thought about title insurance until you started the process of buying a house. Owning a real estate is one of the most precious values of freedom in this country. Get the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home/property. Title insurance eliminates any risks and losses caused by the faults in title from an event that occurred before you owned the property.

What does it cost?

The cost depends upon the purchase price of the property, and your policy amount must be equal to the purchase price.