Title Insurance protects against defects in title to real estate and the ownership of real property. Property ownership can be jeopardized by a number of different means, which in turn can result in the loss of the property itself. A clear title to property is by far the most important aspect of real estate ownership. For a clear and insured title provides the knowledge and comfort that the property is rightfully owned. 

Title to real estate dates back to the mid 1600's. It was first used by the Colony of Massachusetts. It was required that transactions regarding sales or grants of houses be recorded to be recognized by the law. Of course there were flaws with titles, resulting in financial loss. To protect against this, title insurance was developed in the late 1800's.

There are many elements that contribute to insuring clear title. They range from public records, title examining/abstracting and underwriting, which if needed, will clear any encumbrances on a property's title. Encumbrances can be unreleased liens, unpaid taxes, judgments or invalid deeds. These are just a few things that can conflict with insuring a title to property.

Title insurance is only purchased once by the homeowner and is done so when purchasing the property itself. It can NEVER lapse and does not require an ongoing premium. A lien holder can require their own policy, but this is done at lower cost then that of the owner's insurance policy.

The amount of coverage has grown over the last hundred years. It has gone from insuring the ownership of the property to insuring access, both pedestrian to vehicular. An owner's insurance policy has been standardized nationwide by ALTA, or the American Land Title Association. ALTA represents title professionals, insurers and lawyers throughout America. They have worked together to create standard yet very effective policies to protect both the owner and lender involved in any real estate transaction.

So if you are purchasing your first home, or refinancing your current residence, title insurance should always be a priority. Whether you are working with an attorney or a licensed settlement agent, discuss the options you have for a title insurance policy. It will be one of the most important decisions you make along the road.