Title insurance is a policy that you buy at closing, or shortly thereafter, insuring you against errors and omissions made by the title examiner. In order to get title insurance a title search or abstract must be conducted. If there is a claim against the title that originated prior to the title search, you are afforded some monetary protection by a title insurance policy.

There are different types of title insurance that protect you in different manners. Most title insurance policies have some exceptions for scenarios in which they will not pay, these are known as standard exceptions. However, what exceptions are standard varies from market to market and also by the company issuing the policy.

There are three types of title insurance:

• Owner’s Title Insurance - Protect the buyer in the amount the buyer paid, from now on, even after the buyer sells the property. It put the issuing attorney in the position of defending the title to the property, and having a vested interest in doing so, should you ever need them.
• Mortgage Title Insurance - Protects the lender interest in the property, not the buyer. When a buyer, or homeowner in the situation of refinancing, borrows money against a property the lender usually requires mortgage title insurance. It is a less expensive policy than the owner’s title insurance because it has more limits. It is only good during the time which the loan exists against the property and for the amount still outstanding on the loan.
• Simultaneous Issue Title Insurance - The best measure of protection. Essentially it is an owner’s title insurance with a mortgage title insurance rider.