Title insurance is an insurance policy that protects your legal rights to own, possess, use, control, and dispose of land. Unlike transferring a title to other items, like a car, for example, transferring a real estate title can be complicated. Land is permanent and the usage of land and the rights to use it can change over the years. Therefore, title insurance protects you against the possibility of the loss of the right to inhabit your home and the land it occupies.
There are two types of title insurance policies: a lender’s policy and an owner’s policy. The lender’s policy is required for a mortgage, financially covers the amount of the loan, and provides protection to the lender; an owner’s policy protects the property owner against any title loss, which ensures the value of the property. With title insurance, if a claim is made against the title then the underwriter must pay all costs associated with defense against the challenge, and if unsuccessful in that defense must reimburse the property owner for any reduction in the value of the land.
Blue Ink Original underwrites for Fidelity National Title Insurance Company and Old Republic National Title Insurance Company.