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Do I Need Title Insurance?

Updated: Oct 19, 2022


a man and woman pore over documents with a laptop and calculator

The simple answer to the question “Do I need title insurance?” is yes. Title insurance is needed for two very important reasons: it protects your own interests and that of your lender against a wide range of property issues, from boundary disputes to liens that could be held on a property to encroachments and even the risk of improperly recorded documents.

All in all, purchasing title insurance is a small price to pay for a great deal of protection against title challenges to your property.

Every time a property changes hands, it's important to have a title search done and a new title insurance policy purchased.

Exactly What Is Title Insurance?

Title Insurance is a contract of indemnity that protects real estate purchasers and lenders against loss caused by specific covered risks related to real estate. Unlike property and casualty insurance that covers events that may happen in the future, title insurance is about risk elimination and covers events that happened in the past. It is protection against issues that can threaten your ownership of your property and protection against liability for problems that happened before you purchased the property.

Title Insurance protects the policyholder from financial loss related to property ownership. There are two types of polices available in a typical real estate purchase transaction.

Loan Policy – Protects the lenders interest and is usually required when financing is involved.

Owners Policy- Protects the buyer’s interest in the property.

We will dive more in depth about both an owner’s and lender’s title insurance policy in a later blog.

In Summary

Title insurance is crucial when purchasing a home. The lender will require it and for a onetime small fee it is in your best interest to purchase an owner’s policy to protect yourself. An owner’s policy will protect you for as long as you or your heirs own the property that is insured. It also covers legal expenses involved in defending the title on behalf of the homeowner. At the end of the day, it is a no-brainer for the largest purchase of your life.

Learn More About Title Insurance from Conestoga Title

If you have questions about the title insurance process itself, or you’re interested in learning more about our title insurance services, then we’re here to help.

Conestoga Title Insurance offers complete title insurance services through a network of highly qualified and experienced independent agents and approved attorneys. Reach out to us today!


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