Title insurance is a type of insurance that protects property owners and lenders from financial losses and legal issues related to the property's title. It provides coverage for potential defects, liens, encumbrances, or other unforeseen claims on the property title.

Title insurance is crucial because it offers protection against potential risks associated with the property's title. It helps ensure that you have a clear and marketable title, protecting your investment and providing peace of mind.

Title insurance covers a wide range of risks, including but not limited to: undisclosed heirs, forged documents, errors in public records, fraud, unpaid taxes, zoning violations, and liens on the property. It provides financial protection and legal assistance in case of any covered title issues.

The cost of title insurance varies depending on factors such as the property value, location, and the insurance provider. Typically, the premium is a one-time payment based on the property's purchase price or loan amount. It is advisable to obtain quotes from different insurance companies to compare prices.

Title insurance coverage lasts for as long as you own the property or have an interest in it. Unlike other types of insurance policies, title insurance provides coverage for past events that occurred before the policy was issued.

Lender's title insurance protects the lender's investment in the property, covering the loan amount. Owner's title insurance, on the other hand, protects the property owner's equity and ownership rights. Both policies are often issued simultaneously during a real estate transaction.

In many cases, you have the right to choose your own title insurance company. However, some lenders or real estate professionals may have preferred providers or requirements. It's important to research and select a reputable and experienced title insurance company that meets your needs.

The process typically involves selecting a title insurance company, providing necessary property information, conducting a title search and examination, resolving any title issues, and finally, obtaining the title insurance policy. Your chosen title insurance company will guide you through the entire process.

If a covered title issue arises after purchasing title insurance, you can file a claim with your title insurance company. They will investigate the issue, provide legal defense if necessary, and compensate you for covered losses or damages based on the terms of the policy.

In some cases, title insurance may be mandatory. Lenders often require lender's title insurance to protect their investment. However, owner's title insurance is typically optional but highly recommended to protect your property rights and investment. It is advisable to consult with real estate professionals and legal experts to understand the specific requirements in your area.