Title insurance protects against problems with your title, which is the legal document that proves you own your home. It’s a type of homeowners insurance that covers losses due to problems with your title, so it’s important to have it in place before buying a home or refinancing.

Title insurance

What Is Home Title Insurance?

Home title insurance is a type of insurance that protects the buyer of real property from any loss that may occur due to defects in the title to that property. It is a policy issued by an insurance company to protect the insured against loss resulting from defects in the title.

Title insurance policies are typically purchased by lenders who require them as part of their mortgage loan requirements or by homeowners who want additional protection for their investment. Title insurance is not required by law, but borrowers may face difficulty finding lenders who will make loans without it.

In addition to protecting buyers and lenders, a home’s title insurance policy covers losses incurred after closing on your house (known as “post-closing claims”)—for example: if at some point after you’ve closed on your home and received possession of it, someone else comes forward with evidence indicating they (or their heirs) have proof ownership over some portion(s) of your property (and thus claim legal dominion), then they can sue you for damages if they don’t receive compensation for their shares before taking action into court; this kind of lawsuit is called an adverse possession case

Why You Need Title Insurance

When you buy a home, you want to be sure that the seller has a clear title and can legally transfer the property to you. Title insurance protects you against losses that result from problems with the title.

For example, if someone claims that they have an ownership interest in your property or if there are defects in its chain of ownership, title insurance will reimburse you for any loss that results from these issues. You also need title insurance protection against mistakes in the chain of ownership (such as missing documents), liens (mortgages), judgments and other encumbrances on your property’s title

What Does Home Title Insurance Cover?

Home title insurance protects you from the financial loss or damage that may result from a defect in your title. For example, if the person who sold you the home did not actually have a right to sell it, then that would be considered an invalid transfer of ownership and could cost you thousands of dollars in legal fees. This type of issue is called “title defect.”

Title insurance can also protect you from:

  • Losses associated with property disputes over boundaries or easements
  • Liability for injuries sustained on your property by someone who was invited onto your land
  • Claims by heirs who say they’ve been cut out of their inheritance (this kind of claim is more common than most people realize).

How Do I Get Title Insurance?

The first step is to contact a title company. You can request a quote from several companies and compare their rates, or you can work with one that you already know. Your real estate agent should be able to recommend some local companies that are familiar with the area and have been in business for a while.

Once you’ve chosen a title company, they will help guide you through signing all of the necessary paperwork. The process is pretty straightforward: just make sure everything is spelled correctly, initial it where indicated, sign in ink where indicated and have your spouse or other co-owner sign next to them. If there are any questions regarding the information on these documents, speak with an attorney beforehand so that they can be answered before closing occurs!

Once all parties have signed these documents in front of witnesses and notaries public (or other appointed officials), pay your premium for title insurance coverage by check or credit card over phone/internet banking system provided by banks during this process; otherwise go back into office later when ready but remember how much time went into preparing deals like this so don’t forget payment options!

When Is The Best Time To Get Title Insurance?

The best time to get a title insurance policy is when you buy a home, refinance your home or sell your home. Title insurance policies are purchased by the homeowner and protect them against loss if there are any problems with their property’s title. If there is an issue with your property’s title, such as an outstanding lien or other claim on it, then you will be reimbursed for any losses due to these issues.

Title insurance does not cover defects in construction costs or structural damages to the building itself; instead it covers issues related directly to ownership of the property such as liens and easements (a legal right of way) over neighboring properties that may impact how much use can be made of one’s own land without interference from others’ rights as outlined in their deeds).

always get title insurance as your protection against these problems is uncapped.

Title insurance is a separate policy that covers losses that are not covered by your home insurance. Homeowners’ policies cover the cost of repairing or rebuilding your house and its contents, but they don’t cover losses caused by problems with the title (right to the property). For example:

  • If you buy a house from someone who doesn’t have legal title to it, you will not be able to sell or transfer the property. This can lead to financial ruin if you’re forced to move quickly and can’t find another buyer.
  • A minor error in recording information can render all kinds of documents invalid, including deeds and mortgages; these mistakes are difficult or impossible to detect without an attorney’s skillful analysis.


By getting your home insured with title insurance, you can protect yourself from unexpected problems. There are many reasons why homeowners need to have a policy in place and we’ve outlined them here. The most important thing to remember is that if you ever want to sell or refinance your home, you will need this coverage so that the lender will be able to inspect the title without any problems. Hopefully our article helped answer some questions about what exactly title insurance does for homeowners!