FAQ

Title Insurance

What is Title Insurance & Why Do I Need It?

Title insurance is an indemnity insurance that insures against financial loss from defects in title to real property. Two types of title insurance that are the most common: An Owner’s Policy indemnifies you, the owner of the property, against any loss arising from a valid claim on the title of your real estate, and will also pay to defend you against any such claim. A Lender’s Policy is usually required by your lender to protect its investment by assuring it that its mortgage is in the first lien position, and that no other lien or judicial action can affect its validity, enforceability, or primacy.

 

How Much Does Title Insurance Cost?

Rates are the same everywhere in the state, no matter the title company. In Northeast Ohio, buyers and sellers usually split the cost of an Owner’s Policy, which is a one-time charge of just over one-half of one percent of the purchase price. Buyers who get a mortgage are usually required to purchase a Lender’s Policy, which is a flat $100 fee when issued with an Owner’s Policy.

 

How Long Does Title Insurance Coverage Last?

As long as you or your heirs have an interest in the property; there is no time limit. The policy for the lender will last until the mortgage is paid in full.

 

Is It as Important as Homeowners Insurance?

It’s a completely different product, for a different purpose. Homeowners Insurance protects you against loss or damage to the physical structure or your home, and your material possessions in it, that may occur after you own it. Title Insurance protects you against loss or damage to the title, or rights associated with your ownership, of your real estate due to claims of others that predate your ownership. Both are smart investments!