Brick Building Title Corp

It’s time to purchase your dream home. You meet with a banker to apply for your loan, talk with your realtor and put in an offer – but now you need the title! A title is a legal document that proves your – or another owner’s – legal right to use, own and control property or real estate. It’s proof of ownership.

When you purchase a home, you gain the title declaring your legal ownership. Just as you insure your home, it’s crucial to insure your title. Title insurance is a policy that protects against financial losses or legal issues from title defects. Understanding titles and title insurance can be confusing, but the importance of title insurance cannot be overstated. Below, the experts at McKesson Title answer eight frequently asked questions about title insurance.

Need to Know: 8 FAQs About Title Insurance

How does title insurance differ from other types of insurance?

Unlike other types of insurance, title insurance protects against past events and potential issues associated with a property’s title rather than future risks like accidents or damages. Title insurance safeguards against defects or problems that may have existed before the property was purchased. Additionally, title insurance is typically a one-time premium paid at the time of property purchase.

What is a title search, and why is it essential for title insurance?

A title search thoroughly examines public records to establish a comprehensive property history. A title search helps mitigate the risks of real estate transactions. By identifying and addressing title issues before the property is transferred, we can better assess the insurability of the title. This process helps protect you and your lender from financial loss or legal complications due to unforeseen title problems.

What types of issues or defects in title can title insurance protect against?

Title insurance protects against claim defects, including:

How much does title insurance typically cost?

Title insurance prices vary. In Indiana, the range is typically 0.5-1% of the property’s value.

Who pays for title insurance?

In Indiana, the buyer is responsible for purchasing title insurance. The buyer pays for the owner’s title insurance policy. The seller might also purchase the seller’s title insurance to protect themselves against potential claims from when they owned the property. Additionally, the lender typically requires the buyer to purchase a title insurance policy that protects the lender’s interest. These costs are often negotiable.

How long does title insurance coverage last, and does it need to be renewed?

Title insurance coverage lasts for the duration of the property ownership. The policy does not expire upon the transfer of the property to a new owner, ensuring continuous coverage for the original policyholder and their successors. Specific terms and conditions vary, so carefully review your policy documents to understand the extent and duration of coverage. The professionals at McKesson Title can advise you on the workings of your policy.

How can title insurance protect against fraud or forgery related to the property’s title?

Someone may claim legal rights to a home you’ve purchased because of misunderstandings, issues with wills or attempted fraud. These individuals may sue to gain possession. Title insurance provides maximum coverage for legal fees associated with any such events. Title insurance also protects you in the event of unforeseen liens. Liens occur when a creditor takes legal property ownership as collateral when an individual can’t pay their mortgage. 

Can I still get a mortgage without title insurance?

Although you can still get a mortgage without a clear title or title insurance, most lenders require them. Title insurance protects your lenders in the event you default on your mortgage. Getting approved for a mortgage without title insurance is much more challenging.

Protect Your Title Today With Expert Title Insurance

Understanding title insurance can be confusing. But title insurance is a crucial component of your property purchase. McKesson can answer any of your title insurance questions. Call us at (574) 936-2601 or submit a request to schedule an appointment today!