What is Title Insurance?

Like many homeowners, you may be surprised to learn that paying your money and receiving the deed does not assure a free and clear title to your property. The enduring nature of land and the complexity of real property laws make it possible for someone to hold a legitimate claim against your home. Claims can limit use, bog you down in legal battles or even result in the loss of your home! Protect yourself with Title Insurance!

Owner's Title Insurance protects your ownership for as long as you own the property. Your policy should be for the full amount paid on the property, not just the mortgage amount. However, you must request an owner's policy at the time you order the mortgage policy. Unlike most forms of insurance, you pay only one initial premium for title insurance. The modest charge is far less than you think and insures you for as long as you own the property.

While most insurance protects you against the future, such as fire, accidents or illness, title insurance protects you against the past such as forged documents, fraudulent impersonations, secret marriages, undisclosed heirs, invalid divorces, and false affidavits. All of these are potential title hazards that could jeopardize your ownership of the property.

A homeowners title insurance policy protects you against hidden defects. If a claim arises and it is not specifically excluded from the insurance, your title insurance company pays it for you or defends against its consequences. Your policy also includes payment of legal fees to defend your ownership!

Will I pay more for the services using an attorney or a Title Company?

Pennsylvania has an "All-Inclusive" rate for real estate title insurance binding upon all members of the Title Insurance Rating Bureau of Pennsylvania. (Make sure whom you choose is a member.) The One-Time Only Fee - the "All Inclusive Rate" - includes the cost of searching the property, the title insurance premium and conducting the settlement.