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What is Title Insurance & Why Do I Need It?

Published on December 3rd, 2007 by | Filed Under: Buying a Home in NJ, Condo & Townhouse Living in NJ, NJ First Time Home Buyers, NJ Real Estate Laws

Tom GrantFor many Americans, the purchase of a home is the single largest investment they will ever make. 

Home-ownership is an integral part of the American dream, yet like anything else, purchasing a home comes with certain risks.  Homeowners insurance and flood insurance help protect you from loss or damage due to theft, fire, or acts of nature.

But what if your ownership itself was challenged? 
Title insurance protects property owners or others with a financial interest (such as a mortgage lender) from loss or damage as the result of liens, encumbrances, defects in, or the unmarketability of title to the property. 

Keys to OwnershipThese losses may occur because of forgery, fraud, defects in the public record, or many other risks.  Unlike a Homeowners Policy, which insures you from future events, an Owners Title Insurance Policy protects you from undisclosed matters that occurred in the history of your property until the date your deed is recorded. 

If an issue does arise due to a defect in the title, the Title Insurance Company pays all costs in defending a lawsuit.

To minimize risk to the homeowner and the lender, the Title Insurance Agency examines the public record to uncover potential issues.  The Title Insurance Agent then works with your attorney to clear up as many of these issues as possible.  The importance of an accurate and thorough examination of the title history should not be underestimated.  Many potential title problems can be eliminated before your deed is even signed.

Colonial Title and Abstract Service has been providing quality title insurance and title related services to New Jersey residents since 1979.  Our knowledgeable and friendly staff benefits both from many years of title experience as well as access to the latest technology.  Customers of Colonial Title and Abstract Service can rest assured that a reputable independent title agency is meeting their title insurance needs.

Title insurance rates and charges are filed with the Department of Banking and Insurance by a bureau of Title Insurance Companies, so the amount that you pay for title insurance shouldnt vary much from Title Company to Title Company. 

When purchasing a home, the title insurance premium is a one time fee and your Owners Title Policy is effective for as long as you own your home.  When refinancing, there are additional title costs associated with insuring the new mortgage. 

To get an estimate of what you might pay for title insurance, please see our user-friendly Title Rate Calculator found at:

  1. Port Orange Juice

    Top New Jersey Realtor discusses everything you ever wanted to know about title insurance, a must to eliminate any problems with title.

  2. Sarah Bandy

    Great post Tom!

    I had an issue with title on a property I wanted to purchase in Colts Neck, NJ. We could not close for close to a year due to a challenge of ownership. My title company was able to step in and allow for closing to take place thus making me feel confident that they would take care of me if any issues were to arise.

    You guys are the best.

  3. Nancy Steinhausen

    Title insurance should help the buyers have some certainty in these uncertain times. A small price to pay for peace of mind.

  4. Why Title Insurance might be the best money you ever spent

    […] Grant has a post on his blog about the importance of title insurance. If you are considering purchasing a home, even if you have already found one and are waiting to […]

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