When you purchase a home, the ownership of the property (i.e. the title) is transferred to you. Basically, title insurance protects you from fraud, undisclosed liens or any other issues that might interfere with your full ownership of your property.
You would generally buy title insurance when you purchase the home, although it can be purchased at any time during your tenure as homeowner. Sometimes homeowners go without title insurance, either thinking that it isn’t necessary or erroneously thinking that title ownership is covered in your home insurance. In fact, title insurance is something else altogether and should be something seriously considered by homeowners, because there is a lot of potential implications.
What Does Title Insurance Protect you from?
In a nutshell, title insurance protects you from “title defects”. Title defects are basically anything that would prevent you from owning the property free and clear. In contrast, homeowner’s insurance...