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Title Insurance

Contributed by Tammy Larson, Business Development at Concierge Title, Inc. in Andover, MN.

Title Insurance - Protecting your Home Investment 

A home is usually the largest single investment any of us will ever make. When purchasing a home, you will purchase several types of insurance coverage to protect your home and personal property. Homeowners insurance protects against loss from fire, theft, or wind damage. Flood insurance protects against rising water. A unique coverage known as title insurance, protects against hidden title hazards that may threaten your financial investment in your home. 

To help you get a better understanding of title insurance, and how it can protect you, we have answered some commonly asked questions about title and title insurance. 

What is a title? 

Simply stated, the title to a piece of property is the evidence that the owner is in lawful possession of that property. 

What is title insurance? 

Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions. 

How does title insurance differ from other title insurance? 

Car, life and health insurance protects against potential future events and is paid for with monthly or annual premiums. A title insurance policy insures against events that have occurred in the past on the property, and the people who owned it previously. Title insurance is paid in a one-time premium when you close on the property. 

What does it cover? 

Title insurance protects against claims from defects. Defects are things such as another person claiming ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items specified in the policy. 

Who needs it? 

Purchasers and lenders need title insurance in order to be insured against various possible title defects. The buyer, seller and lender all benefit from issuance of title insurance. 

How is a title insurance policy created? 

After the title closer or lender opens the title order, the title agent or attorney begins a title search.  A preliminary report is issued to the customer for review and approval. All closing documents are recorded upon escrow's instruction. When recording has been confirmed, demands are paid, funds are disbursed, and the actual title insurance policy is created. 

What is escrow? 

Escrow refers to the process in which the funds of a transaction (Such as the sale of a house) are held by a third party, often the title company or attorney, pending fulfillment of the transaction. 


If you have additional questions about title insurance, or would like to speak with a title specialist, please contact Heidi Franke, Executive Closer at Concierge Title, Inc. at heidi@conciergetitle.com or 763-795-9106. 

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