Title protection or insurance is a lifesaver for many homebuyers. It protects them from various real estate issues. If you’re purchasing your own property, you probably want to know more about it. Here’s a brief guide that’ll help you:

What Is It?

Title insurance protects the holder from losing money if there are any defects in their property documents. There are 2 types meant to cover different scenarios. Here’s a brief primer on them:


Most lenders will require you to get this since it’ll protect them from financial loss. After all, title searches aren’t infallible.  Having insurance will compensate them when there’s an issue that everyone missed.


This, on the other hand, is purchased by the seller. It protects the buyer against defects in the title. It’s optional, but it’s still a good idea to make sure you have one before finalizing your transaction.

What Does It Cover?

Generally, it protects against hazards to your title. Unlike other forms of insurance that will help you in future events, this is a one-time thing. If there are flaws or discrepancies found, you won’t have to pay for it.

This coversmany things. The insurance can deal with access or boundary issues, defective foreclosures, or probate problems. You also won’t have to worry about ‘off-record risks,’ such as missing heirs, void court judgments, or mistakes made while examining public records.

What Doesn’t It Cover?

While title protection covers a lot, it can’t handle everything. There are limits to what it can do for you. If something happens to your property after you’ve bought it, you’re responsible for it.

Again, this applies to many different scenarios. Maybe you failed to sell your property or suffered considerable financial damage in a fire or flood. Or, you accidentally violated zoning ordinances or had trouble paying for your mortgage. If that’s the case, the insurer won’t cover you.

What Are the Risks of Not Having One?

If you don’t have title insurance, you and the other parties involved in the transaction are at risk if a defect is discovered in the documents. While shopping for a new house, maybe unpaid taxes are suddenly unearthed or the previous’ owner’s heirs turn up unexpectedly.

Without insurance, you won’t just be at risk of not being allowed to buy the home of your dreams; you’ll lose a considerable amount of money as well. Remember that you’ll be paying for all the legal fees alongside other financial costs if things go wrong.

With home title protection, you won’t have the same issue. All you need to worry about is purchasing the house you wish to buy. And, the other problems? You can rest assured that there is an insurance policy that has you covered when they turn up.

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