Why You Need Title Insurance

Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, investors, and others who have an interest in a land transfer. Title companies routinely issue two types of policies – “owners,” which ensures you, the homebuyer; and “lenders,” which ensures the lender over the life of the loan. Both are issued at the time of purchase for a one-time premium. Before issuing a policy, however, the title company performs an extensive search of relevant public records to determine who has an interest in the property.

The answer to why you need title insurance is simple: the acquisition of a home is most likely one of the most expensive and important purchases you will ever make. You and your mortgage lender want to make sure that the property is indeed yours and that no individual, company or government entity has any right, lien, or claim to your property.

Title insurance companies are in business to make sure your rights and interests to the property are clear and that transfer of title takes place efficiently and correctly. Your interest as a homebuyer and the lender’s interest are protected with the purchase of these policies.