What is title insurance?

On the day of closing, your title company tells you they did their research, and title looks clear.

However, if fraud, forgery, or human error is discovered in the future, your claim to title may become clouded.

Title insurance is sold by your title/closing company and covers the purchaser from the day of closing back in time.

It doesn’t cover events that happen after you take ownership because it doesn’t insure against the future.

It’s important to understand what situations are and are not covered by your title insurance policy.

All title companies offer title insurance, but, like all types of insurance, different companies’ insurances cover different things. Regardless of your title company, any title insurance is better than not having it.

If you have a mortgage, you’ll be required to obtain Lender’s Title Insurance (LTI), and Owner’s Title Insurance (OTI) is always optional.