When it comes to conducting a closing for the purchase of a home, one of the most common questions we receive is "what is title insurance and why do I need it?" Title insurance is simply a policy that provides protection in the event that someone contests your ownership of the real estate. The title company would help defend against this contested ownership claim. While contested ownership may seem unlikely, there are many examples of suits which cost people a large amount of money in legal fees or even their homes. For example, without title insurance, even someone claiming a minor ownership interest was not properly transferred from several owners ago can cost buyers large amounts of money in defending their ownership. 

When buying a home and getting a mortgage, you will pay a title insurance premium. However, this insurance is to cover the bank which is providing the loan. We strongly recommend also purchasing an Owner's Title Insurance policy to cover yourself, the new homeowner. This title insurance is one of the best ways to protect your investment, your finances, and your home.