The FAQS of Title Insurance for Homebuyers

What is Title?

A title is your ownership right to your property.

What is a Title Search?

A title search is a standard part of the home buying process that is conducted to uncover issues that could prevent your right to the property. Your closing agent reviews public records to see if there are problems or defects that could cause you legal issues.

What is Title Insurance?

If you’re buying a home, title insurance is a policy that protects your investment and property rights.

The FAQs of Title Insurance for Homebuyers

There are two different types of title insurance: owner’s policy and lender’s policy.

1. An owner’s policy protects your property rights for as long as you or your heirs own the home.
2. A lender’s policy is usually required by the lender and protects only the lender’s financial interests. The buyer typically pays for this policy, but this varies depending on geography. We recommend you ask an ALTA member how it’s handled in your area.

Why Should I Purchase Owner’s Title Insurance?

Purchasing owner’s title insurance is a smart decision because it’s the best way to protect your property from future legal claims.

What Does Owner’s Title Insurance Cost?

The one-time payment for owner’s title insurance is low relative to the value of your home. The typical owner’s title insurance policy costs around 0.5% of the home’s purchase price.

How Long am I Covered?

Your owner’s insurance policy lasts as long as you or your heirs own your property. Your life will change over time, but your peace of mind never will.

What Happens at Settlement?

You sign the legal documents and receive the keys to your home.