The basics of title insurance Just because you have to buy it doesn't mean you can't save yourself some money. Here are the details and four ways to cut your costs. If you're buying a home, your bank is probably forcing you to buy title insurance. But just because you have to buy it doesn't mean you can't save yourself some money by knowing a few of the basics.
Title insurance protects the bank against mistakes made in a title search.
The title search checks on details such as making sure there isn't a lien against the title or that the person you're buying the house from really owns it. A serious error could result in the bank collecting on the value of the mortgage from the title company while you continue paying a mortgage on a home you no longer own. Money Insurance Common types of title insurance claims are for the cost of back property taxes that the title company missed in researching a sale, or the cost of a settlement with a neighbor whose new driveway or fence crept across a property line. Title insurance usually covers the amount of a mortgage, with the policy's value declining as the mortgage is paid off. Generally, only the policy protecting the lender is required with protection for the home buyer optional.