What Is Title Insurance?

Title insurance is part of the closing costs of buying a home that is sometimes unanticipated. However, it could prove to be a huge benefit to you in future. Here’s why.

home title insurance

Title insurance covers you in the event that any prior ownership of the property comes into question. This is because a title itself is not a physical piece of paper, it is a record of all previous ownerships and liens of the property. The deed on the other hand, is a physical document.


So why might you need insurance on something that doesn’t even physically exist? When you sign a contract to buy a house, the next step in the process involves pulling the records for the property and verifying that all previous lien and ownership documentation that have been filed are valid. The county recorder only verifies documents, he or she does not verify their validity.


Therefore, if any questionable documentation arises (e.g. if any liens are found to be invalid or if anyone who claimed to own the property was not actually a titleholder) during this period after you sign the contract called the title search, the burden of any payment (if required) will be on the insurance company and not you, if you have title insurance. If you do not have title insurance it will come out of your own pocket. While costs vary depending on the situation, this is an expense that many homeowners do not want to incur, and it can be easily avoided by having title insurance.


American Home Title Group has been helping Marylanders with their title needs for over 25 years. In the ever-volatile real estate industry, a company’s longevity can be attributed to the quality of its work. With more than 120 years of experience in real estate and titles, American Home Title Group is ready to provide you with the best experience possible in every capacity.


American Home Title Group is ready to assist you today with a variety of real estate needs you may have. Contact us now to get started. Our phone number is 410-750-8500. To reach us via email, please send a message to info@americanhometitlegroup.com. Follow our blog and keep up with us on Google+Facebook, and Twitter.



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