Title insurance is one of those closing costs that’s easy to gloss over – but understanding what it actually protects makes it clear why nearly every lender requires it.
What it protects against
Title insurance covers losses from defects in a property’s ownership history that a title search may not catch – forged documents, undisclosed heirs, clerical errors in public records, or liens that weren’t properly released.
Two types of policies
A lender’s policy protects the mortgage company’s interest and is required for any financed purchase. An owner’s policy protects your equity in the home and is optional – but strongly recommended, since it’s the only policy that protects you directly.
A one-time cost
Unlike homeowners insurance, title insurance is paid once at closing and lasts for as long as you (or your heirs) hold an interest in the property.
Have questions about your closing costs? Call Dockside Realty at 850.225.9785 or email christine@docksiderealtyinc.com.