What is Title Insurance?

Real estate is the nation's largest market, making the purchase and sale of real property essential to the health of the U.S. economy. These transactions are never without risk, however. That's why title insurance has been protecting American homeowners for more than 125 years.

What is title insurance? Get the 411 on the policy that protects your investment. View the complete infographic

The Two Title Insurance Policies

As a buyer of real estate property, you'll want to protect your investment — and the ownership rights that come with it. That's why it's wise to purchase an owner's policy of title insurance in conjunction with the loan policy your mortgage lender will require you to purchase. The loan policy insures the lender against covered title defects up to the amount of the insurance, while an owner's policy protects your interest in the property.

Learn more about both title insurance policies and which helps to protect your interests.

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Your lender demands protection; you should too. Learn more about the two different title insurance policies

Title Problems

Every property has a history, and that history can affect your right to own and enjoy your home. A title search can help uncover — and remedy — title defects tied to your property. Then, subject to the terms of the policy, your owner's policy of title insurance can provide protection from title problems that may become known after you close your transaction.

These title issues could include things like:

  • Errors in public records
  • Unknown liens
  • Illegal deeds
  • Missing heirs
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What problems could be lurking in your property's history?
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The Title Search Process

When you purchase title insurance, title professionals will conduct a public records search to identify and remedy, if possible, any issues or "clouds" that could affect your right to own or enjoy your property. A title search is a complex process, one that few homeowners recognize at the time they purchase their home. Find out what goes into a title search — and how it can help protect your rights.

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An in-depth title search can uncover many unknown title clouds. Title defects are found in 25% of real estate transactions.

Behind the scenes, title professionals work to protect your interests. Learn more about the title search process

70+ Ways to Lose Your Property

There are many ways hidden "title defects" could cause you to lose your property. And, even if you don't lose your property altogether, title problems could make it impossible for you to sell.

Don't let a problem that occurred long before you bought your property deprive your rights.

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The Title Insurance Policy Premium

While you may have an idea of how traditional insurance models work, title insurance differs in how premiums are paid and how coverage is offered. When you purchase an owner's policy of title insurance, you'll only pay a single premium.

That's because the policy offers protection from past events that could affect your future homeownership rights, rather than against issues that could occur in the future. Learn about title insurance premium costs, how they are calculated and what they cover.

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