What is Title Insurance?

Title insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss sustained from defects in a title to a property. The most common type of title insurance is Lender’s Title Insurance, which the borrower purchases to protect the lender. The other type is Owner’s Title Insurance, which is often paid for by the seller to protect the buyer’s equity in the property. The most common claims filed against a title are back taxes, liens, and conflicting wills.

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