FREE Insurance Comparison

 Secured with SHA-256 Encryption

Call (877) 826-9032

for FREE insurance quotes by phone
Insurance | Free Online Insurance Quotes

Compare Insurance Quotes!

Compare Quotes from Top Companies and Save

 Secured with SHA-256 Encryption

What is title insurance?

Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted...

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella...

Full Bio →

Reviewed byDaniel Walker
Licensed Auto Insurance Agenthttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/insproviders-live/ca745a12-daniel-walker.png

UPDATED: Mar 19, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Title InsuranceTitle insurance is assurance that the title on a property is clean. It is purchased by the buyer of a property prior to the closing.

If the buyer is borrowing money for the purchase, the lender purchases title insurance for the mortgage amount. The buyer purchases title insurance directly from the insurance company if no lender is involved.

A title insurance company provides the insurance, insuring the buyer against any prior liens or other matters affecting the title so the buyer is protected. If any issue should arise from the original property owner, the burden falls on the insurance company to resolve the matter, up to the dollar amount value stated in the policy.

Read on to learn about the important things to understand about title insurance before purchasing:

  • History of Title Insurance
  • Why do I need Title Insurance?
  • Types of Title Insurance
  • How Do I Select a Title Insurance Company?

History of Title Insurance

In most countries, land ownership and transfer of property was overseen by the government through a system of land registration. It is the government that verifies a clean title, not an insurance company.

With the absence of a governmental land registration in the United States, there were cases where the buyer of property later lost the property due to an unknown lien against the seller. As a result, the first title insurance company was formed in 1876 to protect buyers.

Why Do I Need Title Insurance?

There are a number of potential problems related to the title, against which the owner is insuring themselves:

  • Title defects
  • Property lien
  • Discrepancy in prior transfer of ownership
  • Building permit violations

Because of these many possibilities, it is important for a title company to review the records of the property to verify a clean chain of title.

Types of Title Insurance

There are two types of Title Insurance:

  • Owner’s Policy
  • Lender’s Policy

The owner’s title insurance policy will be based on the market value of the property at the time of purchase; usually the purchase amount. This policy covers any damages or loss the owner incurs as a result of defects on the title. The policy is a guarantee for the owner that the title is free of any defects.

The lender’s title insurance policy is based on the amount of the mortgage, not the full purchase amount. It protects the lender from any losses up to that dollar amount.

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

 Secured with SHA-256 Encryption

How Do I Select a Title Insurance Company?

Lenders usually pick their own title insurance company, but it is unlawful for them to tell the owner which company the owner must use.

Property ownership is a very valuable investment and careful consideration of proper insurance from a reliable company is important.

When selecting a title insurance company, it is important to do plenty of research on the reliability of a company and compare free quotes from as many companies as possible.

You can start your research here and compare free quotes from a variety of title insurance companies by entering your zip code on this page!

Compare Insurance Quotes!

Compare Quotes from Top Companies and Save

 Secured with SHA-256 Encryption