What is Title Insurance and What Does It Cover?

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Everyone has heard the horror story of the brand new homeowner that is enjoying their dream home, only to have an unexpected visitor that says, “Get out of my house.” This is a frightening situation that does end up in American courts every year. The solution to this is preventative, and that is with title insurance protection. Title insurance protection is sometimes obtained by the lender to ensure the title they are lending on is a good one.


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It’s also sometimes purchased by the buyer as a part of closing costs. This is a question you can ask your lender when you are arranging the financing, as you may not have to pay for it.

In this video by Morning Invest, the intricacies of title insurance protection are explained. Most states require title insurance on a new home, and it is to ensure there have been no real gaps in the title history of a home. A gap in the title history is referred to as a cloud on the title. What you want is a clear title history, or your unexpected visitor could land you in court fighting over a home you think you own. Find out more with this insight by Morning Invest.


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