Title Insurance is an insurance policy that pays the policy holder for actual defects or issues with title on a property. The title company would be responsible for paying specified legal damages against a valid claim.
Title insurance is generally required by a lender, but every buyer should consider a title policy even when not required for the reasons stated above. But also, because a home is one of the – if not the – biggest investment you will likely make.
The policy itself costs less than one percent of the sales price. It is a one-time fee and offers insurance for as long as you own your home or, in case of a lender’s policy, for as long as the loan remains in effect.