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What is Title Insurance?

Title insurance stands apart from other types of insurance in its focus on protecting the insured from potential losses stemming from past matters or faults. Unlike auto, life, or health insurance, which safeguard against future losses, title insurance looks back in time to address existing issues related to the property's title.



Protection from Past Matters

Title insurance safeguards against losses arising from historical matters or faults associated with the property's



One-Time Premium

Unlike recurring premiums in other types of insurance, title insurance involves a one-time premium paid at the closing of the real estate transaction.



Limited to Past Events

Title insurance does not provide protection against future faults; its coverage is retrospective, focusing on past events related to the property.


Risks and Undiscovered Interests

It protects the insured from various risks and undiscovered interests in the property's title that could lead to financial losses.



Two Principal Forms

Lender's Policy:

  • Required by lenders when issuing a loan to a homebuyer.

  • Protects the interests of the lending institution in case of
    title issues.

  • Coverage decreases over time and eventually disappears
    once the loan is paid off.

​Owner's Policy:

  • Purchased for a one-time fee at closing.

  • Lasts for as long as the owner or their heirs have an interest
    in the property.

  • Provides protection against hidden problems in the property's title.

In summary, title insurance is unique in its retrospective nature, offering protection against past faults or issues related to a property's title. The one- time premium at closing distinguishes it from other insurance types that involve periodic payments. Both Lender's and Owner's policies serve specific purposes in mitigating risks associated with the property's title.

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