Understanding Title Insurance Benefits

6 min read

Title insurance is a one-time policy that protects you from future claims against your property ownership. Here's what you need to know:

**What is Title Insurance?**
Title insurance protects property owners and mortgage lenders against financial loss due to defects in the title to a parcel of real property.

**Why Do You Need It?**
- Protection against undisclosed heirs
- Defects in title documents
- Forged signatures
- Errors in recording
- Unknown liens or encumbrances

**Types of Title Insurance:**
1. Owner's Policy: Protects the homeowner
2. Lender's Policy: Protects the mortgage lender

**What Does It Cover?**
- Legal fees for title defense
- Loss of the property
- Outstanding liens or encumbrances

**One-Time Premium**
Unlike homeowner's insurance, title insurance requires only a one-time premium payment at closing.