Title Insurance

Title insurance protects against defects in a property's ownership history, things like unpaid liens, forged signatures, boundary disputes, or an unknown heir who surfaces years later. Unlike most insurance, you pay a one-time premium at closing and the coverage lasts as long as you own the home. There are two policies. A lender policy protects the bank for the amount of the loan and is required by most mortgages. An owner policy protects your own equity and is optional but strongly recommended, since the lender policy does nothing for you. Both are typically issued after a title search and are standard in Rhode Island and Massachusetts closings. The cost is a line item in your closing costs and is closely tied to the deed being recorded.