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Title Insurance: What is it anyway?

Posted on Tuesday, November 22, 2011

How often do we receive questions on title insurance, particularly in a foreclosure situation. Sometimes we think people purchase insurance and do not fully understand what it is. This morning we are going back to our associates at Access Title in Naples Florida and found the following on their website:

“An Owner’s Policy of Title Insurance protects the property owner against any claims that may challenge the ownership. A Lender’s Policy of Title Insurance protects the Lender’s interest in the property should their lien rights be challenged. If unknown defects should come to light, the policy holder is protected against issues that may result in a loss being incurred. This coverage is provided for a one‐time fee that is based upon the dollar value of the coverage being provided.

Unlike other forms of insurance, Title Insurance emphasizes RISK PREVENTION rather than RISK ASSUMPTION. To prevent or minimize the risk, a title search is performed by researching the public records available to determine if defects exist on the property. Some of the defects that could be uncovered are access issues, errors in legal descriptions, unreleased mortgages, missing deeds in the chain of title, tax liens, and judgments. The commitment that is produced following this search will identify said risks and determine the steps necessary to correct or remove them prior to or at closing.
After closing, you will receive your Title Insurance Policy which should be kept for future use by you. Should you sell or refinance your property, the policy may be used by us to save you money towards the cost of a new policy.”

Ok, I bet you had most of that right – but save the policy for future discount – that is a good idea. Title insurance is a good idea, go after it and sleep a little better at night.

What are your thoughts?




No legal advice or suggestions are being given in this Blog and the writing of this Blog are intended for the sole use of our clients.


Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples.  After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan.  Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.


Mark Goebel, PA