Title Insurance Policy

A Title Insurance Policy is a specialized insurance product that protects real estate owners and lenders against financial loss from defects in title to real property. Unlike other insurance that protects against future events, title insurance protects against claims arising from past events such as errors in public records, unknown liens, forgery, undisclosed heirs, or improper legal descriptions. There are two types: owner's policy (protecting the buyer) and lender's policy (protecting the mortgage lender). The policy is typically issued after a title search and examination. It's purchased with a one-time premium at closing and remains in effect as long as the insured owns the property. Title insurance provides peace of mind and is often required by lenders.