WHAT IS A TITLE?
A title is comprised of the legal rights that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established that person can claim the property outright or make demands on the owner as to its use.
TWO TYPES OF TITLE INSURANCE
Your lender likely will require that you purchase a Lender's Policy. That policy only insures that the financial institution has a valid, enforceable lien on the property. It does not protect you.
An Owner's Policy on the other hand is designed to protect you from title defects that existed prior to the issue date of your policy. It also covers the full cost of any legal defense of your title.
HOW MUCH DOES TITLE INSURANCE COST?
The premium is directly related to the value of your home. It is a one-time only expense paid when you purchase your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.