Title is your ownership rights to your property.

Title insurance is a policy that protects your investment and property rights. There are two different types of title insurance: owner’s policy and lender’s policy.

An owner’s policy is purchased by the homebuyer. While it is the homebuyer’s choice, purchasing an owner’s title insurance policy is the best way to protect your interests when buying property. You, the homebuyer, are covered as well as your trustees, inheritors, and beneficiaries.

Under the owner’s title insurance policy, you are protected against any unforeseen errors in the title. Common errors include:

• Forgery: making a false document; for example, the seller misrepresents the identity of the person who signed the title.

• Fraud: deception to achieve unfair gain; for example, someone steals your identity and either sells your house without your knowledge or consent, or takes out a second mortgage on the property and walks away with the money.

• Human Error: inconsistent paperwork and historical records; for example, an unforeseeable discrepancy in the property or fence line can cause confusion in tracking the title history.

A lender’s policy is usually paid for by you or the seller, depending on the type of real estate transaction. It is almost always required by the lender and protects only the lender’s interests. Only the lender is covered by the lender’s policy.

Owner’s title insurance lasts for as long as you or one of your heirs owns the property.