Title insurance for a home is a type of insurance that protects the homeowner and the mortgage lender from financial losses or legal disputes related to the property's title. A property's title is the legal ownership and right to use that property.

When you buy a home, a title search is conducted to verify that the title is clear, meaning there are no outstanding liens, claims, or other issues that could affect ownership rights. However, even with a thorough title search, there could still be hidden problems or mistakes in the title records. Title insurance provides coverage for a variety of potential issues, such as:

Ownership disputes: If someone else comes forward and claims ownership of the property.

Liens and encumbrances: Unpaid debts, mortgages, or other financial claims that could affect the property's title.

Forgery and fraud: Forgeries or fraudulent activities related to the title documents.

Errors in public records: Mistakes or omissions in the official records that could impact the title.

Title insurance is typically a one-time premium paid at the time of closing on the property. The policy will remain in effect as long as you or your heirs have an interest in the property. There are two types of title insurance policies:

Lender's Title Insurance: This protects the mortgage lender's interest in the property, and it is usually required by the lender to secure the loan.

Owner's Title Insurance: This protects the homeowner's interest in the property and is optional. However, it's generally recommended to get an owner's policy to protect your investment in the property.

Title insurance is essential because it provides peace of mind and financial protection against unforeseen issues with the property's title. It ensures that you can enjoy your property without worrying about potential legal battles or financial losses caused by title-related problems.