Definition
Title insurance is a policy that protects a homeowner and their lender from financial loss due to defects in a property's title. You pay a single premium at closing for coverage for as long as you own the home.
Understanding Title Insurance
During the closing stage of the mortgage process, you'll purchase title insurance. It protects against future claims or disputes over property ownership. In simple terms, title insurance ensures that you have clear ownership of your new home. Example: If you buy a house for $200,000, title insurance might cost a few hundred dollars. It protects against issues like unpaid property taxes or previous liens. It's not a monthly payment like homeowner's insurance. Instead, it's a one-time fee paid at closing. Title insurance secures your ownership, not the condition of the property itself.
