Cincinnati title company

What is title insurance, and do I need it?

Whether you’re a new homebuyer or have bought and sold dozens of homes, title insurance is a way to protect yourself against financial loss and legal fees resulting from title defects. But with closing costs adding up, you might wonder whether opting out of title insurance is worth it.  

Let’s dive into all you need to know about owner’s title insurance. 


What we’ll cover:

  • What is title insurance? 
  • What does title insurance cover?
  • Types of title insurance 
  • Cost of title insurance
  • Risks of not buying title insurance 

What is title insurance?

Owner’s title insurance protects homebuyers against financial loss related to property title issues. 

When a property is bought and sold, the transaction is recorded in public records. Along the way, there could be undisclosed or missed pieces of information that affect how property ownership is transferred.  

If ownership claims are called into question, the homebuyer’s title insurance kicks in to cover legal fees and other costs. 


What does title insurance cover?

Even if the title company does their full due diligence during the title search, they can only uncover what is publicly available and disclosed. Even then, human error happens. 


Here are some common issues that title insurance covers:

  • Improper execution of documents
  • Forgery and fraud
  • Undisclosed liens
  • Undisclosed mortgages
  • Missing heirs
  • Unpaid taxes 

 Types of title insurance

There are two types of title insurance: owner’s title insurance (owner’s policy) and lender’s title insurance (lender’s policy.) 


As the name suggests, the owner’s policy is issued to the homebuyer, while a lender’s policy is issued to the lending entity. While owner’s title insurance is optional, lenders and banks will almost always require title insurance.


Cost of title insurance 

While title insurance is regulated at the state level, most will typically run around 0.5% – 1% of the property’s purchase price. 


Unlike other types of insurance, title insurance is a one-time fee paid at closing and is valid for the entire period of ownership. There are no additional or follow-up fees. 


Risks of not buying title insurance 

Although owner’s title insurance is not obligatory, homebuyers face several risks by opting out of the insurance. Should any problem arise, such as someone making an ownership claim after closing, the homeowner is solely responsible for paying all legal fees and bearing any financial losses. 


Priority National Title – Cincinnati’s trusted title company 

For over 20 years, the Priority National Title team has helped countless clients, family members, and friends achieve their dream of homeownership. We know that behind every transaction, real people with complicated, busy lives need a team to make things happen for them.


That’s why we offer closings seven days a week, before and after hours, wherever it’s best for you.


If you’re looking for a title company that will provide top-tier service from beginning to end, give our team a call today. 

PH (513) 847-1310


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