| Title insurance provides coverage for certain losses in the title prior to your ownership. It protects against claims resulting from various defects such as prior fraud or forgery that might go undetected until after closing...and may possibly hurt your ownership or investment.
Q.) What protection am I obtaining with a title policy?
A.) A title insurance policy contains provisions for the payment of the legal fees in defense of a claim against your property, which is covered under your policy. It also contains provisions for indemnification against losses, which result from a covered claim. A premium is paid at the close of a transaction. There are no continuing premiums due, as there are with other types of insurance.
Q.) How much does it cost? A.) Your title insurance policy is based upon the purchase or sales price of your property. It is usually less than 1% of the purchase price. It is a one-time premium which is paid at the close of escrow.
Q.) Who will pay for Title Insurance charges, the buyer or the seller? A.) That depends...it is a negotiable item in the purchase contract. Q.) Why does a Lender require Title Insurance? A.) When lender generate loans, then sell them to secondary market investors, such as Fannie Mae. Fannie Mae, protects its investment in the loan by requiring title insurance coverage. Q.) Who is the best title insurance company? A.) Ask your Realtor®. They usually have built a strong relationship with a good Title Insurance Company. | 
