What is title insurance?

Title insurance is a form of insurance that protects the property owner from any financial losses resulting from an issue with the title to their property. Title insurance is mandatory in Texas and covers potential issues such as undisclosed liens and encumbrances, faulty property surveys, undisclosed heirs, and unrecorded deeds. Title insurance policies are issued by an underwriter, who reviews the title of a property before it is bought or sold. Title insurance protects the homeowner from any hidden title issues that may exist. The insurance covers the homeowner if a dispute arises from an issue with the title to the property, such as a boundary dispute or a problem with the deed. All Texas lenders require the property owner to purchase title insurance when they obtain a mortgage so that the lender is protected in case of any issues with the title. The premium for title insurance in Texas is usually based on the amount of the loan and varies from company to company. The title insurance policy will also provide other advantages for the property owner, such as protection against title fraud, access to a legal defense fund, and free additional coverage if the title is successfully challenged by a third party. Title insurance is an important way to protect your property investment in Texas. It safeguards against unexpected surprises related to your property title and provides valuable protection for homeowners.

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