Title Insurance: a policy that protects a buyer and/or a lender against errors or omissions or defects in the title of the property.
Title Insurance will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy. Just as lenders require homeowner’s insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance to protect their interest in the collateral of loans secured by real estate.
There are two types of Title Insurance:
Owner's policy - protects you, the owner.
Lender's policy - protects the financial institution which issued your mortgage
Your Attorney or Settlement Agent can answer your questions about Title Insurance in general and about the coverage provided by Owners Title Insurance and help you weigh the costs and benefits of purchasing this policy.