Definition of Title Insurance Coverage


When buying a house, you take on a number of risks as a new homeowner. While the risks of damage to the property are normal, some other risks may not be as prominent. Make sure that you have a free and clear title to the property to avoid any claims against it in the future. Title insurance is a product that can help you ensure this.

Title Insurance Basics

When you buy a home, you will be given the opportunity to purchase title insurance from a title company. This is a type of insurance policy that protects you against any problems with the title to your property. Over the years, your property has most likely changed ownership many times. During the transfer of ownership between the properties, something could have happened to result in the ownership not being cleanly transferred. When this happens, someone else could claim to own the property and file a lawsuit against you. The title insurance will help pay for any legal costs and for the potential loss of the property. By purchasing title insurance, you can protect the amount of money that you have invested in this property.

Title Search

When you are in the process of buying a home, the title company that you work with will run a title search. A title search is a process by which the company looks over the history of the transactions involving your property. The company will look at each owner and each individual transfer of the property. The title company will make sure the property was transferred cleanly, and then will be able to offer title insurance to you.

Two Types of Coverage

When it comes to buying title insurance, you can pay for two different types of policy. You can buy one that protects your lender, and one that protects your own interests. When you use a mortgage to purchase a home, the lender will typically require you to pay for title insurance. This is paid as part of the closing costs of your loan. You can choose whether you want to buy your own title insurance policy.


When you buy the property, you are investing thousands or millions of dollars of your own money into it. You should want to protect your investment in every way possible. While you most likely buy homeowners insurance, title insurance is just as important. You can pay a nominal one-time fee at the closing of your home and be covered indefinitely by the title insurance company. This way, if a claim against your property ever comes up, the title insurance company will reimburse you for your losses.

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