WHAT IS TITLE INSURANCE AND WHY DO I NEED IT?

            Whenever you borrow money from a lender for a Mortgage, the lender is going to require you to purchase title insurance to protect them against errors made in researching the title of your property.   This insurance coverage guarantees the lender that if a title problem were to arise which would result in a lien against your property or a devaluation of your property, the lender will be compensated for any loss they may incur.  

            The lender's title insurance is typically required at the time that you purchase your home.  This policy does not protect you, but you are provided an opportunity to purchase your own policy of title insurance at that same time.    By purchasing this policy of insurance your give yourself the peace of mind of knowing that if a claim were to arise regarding the title of your home, you would be protected just as the lender is.   You pay the insurance premium only one time, and the policy remains in effect for as long and you are in title to the property.

            While it is rare for a title problem to arise, it does happen.   If you do not purchase your own policy of insurance you could potentially lose money, or in the worst possible scenario, your home.  

            The cost of title insurance is minimal compared to what it would cost you to pay an attorney to protect your interest in your property and the potential cost of any claim.