Financial security. Protecting your biggest asset.
Put simply, title insurance is a way to protect yourself from financial loss and legal expenses in the event there is a defect in title on your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention, rather than risk assumption. A Title Search is performed showing the history of the property, and then works to eliminate any title issues before a purchase occurs.
Title insurance differs in that it comes with no monthly payment. It’s just a one-time premium paid at closing, and covers the owner for their entire ownership. A Title Insurance policy will insure a property after closing, and protects against any future defects or false claims by heirs should they arise.
It is almost always required by your lender when you purchase a house. Furthermore, title insurance is a way to protect what is likely your largest investment — your home.
A number of title issues may arise, even after the most thorough search of public records. These unfound defects are dangerous because it can take months, or even years, to learn about them after purchasing. Some common examples of risks covered by your Owner’s Policy include defects in title caused by:
The one-time premium that you’ll pay for a title insurance policy varies by state, and is generally related to the property value. You can use our Virginia Rate Calculator to estimate how much your title insurance policy may cost.
An Owner’s Title Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover financial loss up to the face amount of your policy.
A Lender’s Policy provides coverage to the lender, not the homeowner. A Lender’s Policy insures that your lender has a valid, enforceable lien on your property. Almost all lenders require borrowers to purchase title insurance to protect their investment.
