Basics of Title Insurance...

The basic premise of title insurance exactly as it sounds, it is insurance that protects you from problems that could be related to the title to your property. Before you purchased your home or the land that it sits on there were most likely previous owners and if there was a problem related to one of the previous title transfers it could create a situation where your title could be called into question. This is why the business of title insurance companies came into existence, with title insurance designed for the lender that protects the amount of the mortgage and then there is also owner’s title insurance that covers the full value of the home.

If you are planning on buying your home through a mortgage, title companies and the lender will require that you have title insurance, if you have put down a substantial down payment or are doing a purchase that does not require a mortgage, it is still advised that you purchase an owner's title insurance policy to make sure you are properly protected. Like almost every type of insurance, if you have it, it seems you'll never need it but if you didn't take the option to purchase it and run into a problem? In hindsight you could wish you would have done it differently...