Title insurance protects against problems tied to a property’s past, not future events. It helps protect buyers and lenders if an issue comes up after closing involving ownership disputes, unpaid liens, recording errors, undisclosed heirs, or other claims connected to the property.
In Pennsylvania, title insurance is part of a state-regulated industry. The premium is generally based on the amount being insured, which usually means the purchase price for an owner’s policy and the loan amount for a lender’s policy.
Before closing, the search and examination findings are reviewed to identify issues that could affect the transfer of ownership. My role is to oversee and review that process, identify concerns early, and issue title insurance policies backed by Fidelity National Title.
In most real estate transactions, you will see two title insurance policies referenced. A lender’s policy protects the lender’s interest based on the loan amount. An owner’s policy protects the buyer’s ownership interest, which is usually based on the purchase price. They are not the same policy, and the owner’s policy is the one that helps protect the buyer after closing.
Title insurance is not just another line item on a settlement statement. It helps protect ownership rights and gives buyers added protection after closing.