Title insurance is a type of insurance policy that protects homeowners against possible defects or challenges to ownership of real property, as well as insuring the validity of a financial institution’s lien against property.

Title insurance is a way of protecting homeowners against financial loss should problems develop challenging ownership of real property or previously undiscovered defects such as liens, claims or encumbrances become apparent at a later date.

There are two types of title policies; a Lender’s Policy and an Owner’s Policy. The bank is issued a Lender’s Policy which insures the validity and enforceability of their lien against the property. Homeowners are not offered any coverage under this policy. An owner’s policy, on the other hand protects you, the homeowner, from title defects that existed prior to the insurance date of your policy.

Title Insurance premiums are a one time payment and are generally paid at the time of closing. The premiums are set by the State and will be directly related to the purchase price and/or mortgage amount involved in the transaction. In addition to the insurance premiums, there are other charges in connection with issuance of the policy that will be paid at the closing. These fees vary depending upon the State and Locality of the property