Get all the answers to your title and escrow questions

Property Transaction FAQs

What is title insurance?

Title insurance is a type of protection for your property when you purchase a home. It protects you against rights and limits claimed by others, which can often limit your access to your property and even bring you financial loss. You are protected against hazards and defects that already exist in the title and can be purchased with a one-time premium. The two types of title insurance are lender or mortgagee protection and owner's coverage.

What does your premium really pay for?

Your premium pays for risk elimination. It gives you the best possible chance for avoiding title claims and losses. Title insurance begins with an examination of whether or not your property is insurable. Title problems found are then disclosed and corrected if possible.   Your premium pays for financial protection against hazards such as forged signatures or an unknown heir claiming ownership of the property.

Who does it protect?

The policy protects the lender's investment by paying the mortgage if a title defect voids the owner's/buyer's title.

How long should I keep my policy?

You should keep your policy even after you sell the property. Some newer policies insure you forever, so check with your title company first before making a decision.

Is my policy still active if I refinance my home?

No, it is not. When the new loan pays the existing loan off, the old title policy is no longer in effect. Most lenders require new mortgagee title policies when refinancing .

What does a title policy cover?

What your title policy covers depends on if you have a standard or enhanced policy. With a standard policy, the title company will pay for any actual loss and defend your title in court under certain circumstances. Contact your title company for more information.

What does a title policy not cover?

Your title policy does not cover any problems you create or problems unrelated to your or the lender's property interests. Losses listed under your policy's exclusions or exceptions are not covered either. Consult your attorney before closing.