insurance

Can title insurance save your home?

What does title insurance do?
Next
2 of 9
Back
What does title insurance do?

Title insurance safeguards the title, which is your claim to a home. The title company searches to see if anyone else has any claims to the property. Any problems that arise are dealt with before closing.

However, if you're buying a foreclosure and the title company doesn't like what it sees, it may not sell you a policy.

Homebuyers need title insurance protection. Such a policy asserts the policy holder has the true claim to the property and promises to defend the policy holder in court if the claim is ever challenged.

In the event of a loss of that claim, the insurance company also promises to reimburse the policy holder up to the insured value of the house.

"In this environment, you're basically buying litigation insurance," says Kurt Pfotenhauer, CEO of the American Land Title Association, a title insurance industry trade group in Washington, D.C.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jay MacDonald

Obamacare’s Heartbleed heartburn

HealthCare.gov users need to change their passwords as precaution against the security threat.  ... Read more

advertisement
Partner Center
advertisement

Connect with us