So, you’re buying a home. You’re probably excited about the “good bones” and amenities the property offers, but what about ensuring the title is clear? That thought probably isn’t at the top of your mind (unless you’re a real estate lawyer, and even then, maybe not).

When you purchase a home, other than the physical structure, you are also purchasing the “title” which is evidence that the prior owners were lawfully possessing the property and can transfer that right to you. Prior to closing, your attorney will review a search of the public records and advise you of any liens, encroachments, or other issues related to your title. Thus, as it sounds, title insurance insures owners against any loss or damage that results from any defects in title, even if you don’t find out about the issue for months or years later! Some common examples where title insurance may provide coverage is for costs and expenses related to (1) another person claiming ownership of your property, (2) deed forgery, or (3) liens and encroachments that were improperly recorded or indexed.

If you purchase a home with a mortgage, the bank requires you to purchase a title insurance policy to protect their interests. However, you as the owner can also purchase an additional policy to protect your interests in the property. This one-time purchase protects you up to the price you paid for the property, effectively protecting your interests for the life of your ownership. Buying a home is usually one of the biggest purchases you make. Why not protect it?