Title insurance is designed to protect you from claims made against the title of the home you're purchasing. When you go to the closingtable, one of the items on the closing papers will be title insurance. Your lender will generally require it for their protection, but you want to have your own (homeowners) policy, as well. Then you can feel secure that your home is covered. Just like with other forms of insurance, title insurance is coverage that you hope to never need, but that you still want to have for safety.
One of the things the title company will do when you're goingto purchase a home is trace the title of that home to ensure that it's clear.That means that the title company doesn't find any liens or claims on it, or any evidence that it wasn't transferred properly in the past. Once it's been established that there is a clear title, an insurance policy on that title can be issued. If the title company missed something, and a claim is made against your ownership of the property, your title insurance company will handle the claim.
That protects you from potentially losing your home to aclaim made by another person who believes they have title to your property. Title insurance is a one-time expense,paid at closing. Unlike other types of insurance, it doesn't have a monthly payment, so you won't need to worry about paying on it during the time you own your home. You'll keep the protection it offers as long as you own the property.
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