The word title is a collective term for all your legal rights to own, use and dispose of land. Title includes all previous ownership, uses and transfers. In order to insure the transfer of real estate property, a title search must be performed. Title insurance protects against the possibility of future loss should your legal rights to your property be challenged.

There are two types of title insurance: a lender’s policy and an owner’s policy. The lender’s policy protects the lender’s interest in the property for the amount of the mortgage loan. An owner’s policy typically protects the home-buyer for the purchase price. While a lender’s policy is often required to grant a mortgage loan, an owner’s policy is typically optional.