We all know what car insurance is, and we are well aware of the benefits to being insured in the event of an accident; but what about title insurance and its benefits?

First of all, what the heck is title insurance?

When you initiate the purchase of your home, title insurance is a legally required part of all real estate transactions and will help protect you in the event that there are legal defects or “hidden risks” that come along with the property.

Who and what am I protecting?

You want to make sure to protect yourself! Owner’s title insurance is to help eliminate the risks associated with the legal history of the property you plan to purchase. This is not the same as the loan policy insurance. Loan insurance is specifically to protect the loan company in the event that they suffer losses if you’re unable to pay your mortgage. Title insurance protects your interests, pays legal costs, claims and continues protecting you even after you’ve sold the property.

What are some of the “hidden risks” title insurance can protect me from?

Here are just a few examples of hidden risks provided by insurance.ohio.gov:

• Child support liens
• Unpaid taxes
  • Local, state and federal
• Errors in public records
• Invalid divorces
• Unrecorded easements (rights of way)
• Signatures that are not legally enforceable
  • minors or mentally incompetent
  • married individuals who represent themselves as single

Can my real estate agent select an insurance provider for me?

No, and yes. Legally, they cannot require you to use a specific lender or insurance company. However, they can certainly provide suggestions and give you ample options to purchase your protection title insurance policy.

How do I pay for it?

Generally, there is a one-time premium. This covers initial investigations into the history of the title & any ongoing expenses. The price range for a policy in 2017 was between $600 and $2,000.