Title Insurance protects real estate owners and lenders against the property loss or damage they could encounter due to encumbrances, defects, or liens in the title to a property. These types of losses can include but are not limited to claims of ownership interest, easements, encroachments, improperly filed documents, forgery, fraud, liens, and a number of other issues.

There are two basic types of title insurance: Loan Policy and Owner’s Policy. The title insurance for mortgage lenders is called a loan policy. You are required to secure a loan policy when the mortgage lender issues a mortgage loan to protect the lender’s interests in the property. The title insurance for property owners is called an owner’s policy. An owner’s policy is issued in the amount of the real estate purchase. This one-time fee is due at closing and remains in effect as long as the property owner or their heirs have an interest in the property. It is only an owner’s policy that offers protection for the buyer, should an unexpected title issue arise.