Frequently Asked Questions

What is title insurance (owner’s policy)?

Title insurance is a form of indemnity insurance that protects homebuyers from financial loss sustained from defects in a title to a property.

Do I need both loan AND owner’s policies?

As a buyer of real estate property, you’ll want to protect your major investment as well as 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.

What are some the most common claims title insurance will protect me against?

Some of the most common issues are:

  • Existing Liens and their priority.
  • Fraud and Forgery
  • Undisclosed heirs and marital rights
  • Violation of zoning or building permits
  • Property’s improper legal description
  • Encumbrances
  • Escrow and Closing errors etc.

What is the difference between loan and owner’s policies?

The two main types of title insurance policies are an owner’s policy and a lender’s policy. Homeowners need an owner’s policy, while the lender’s policy protects your lender from any losses that could come up if the property’s mortgage is invalid.

How long does owner’s policy last?

It lasts as long as long as you or your heirs retain an interest in the property or remain liable for any warranties on the title.

Are their monthly or annual premiums for title insurance?

No! You pay for title insurance (owner’s policy) only once. There are no additional costs or ongoing premiums involved.

More FAQ answers

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