Any real estate purchase is not an actual purchase of land and home but an acquisition of a title to it. This title may be limited by existing liens on the property, easements that had been granted, or other rights and claims reserved by others. In contrast to other kinds of insurance focusing on possible events occurring in the future and charging an annual premium, title insurance focuses on past events, i.e. risk and defects that already exist in the title to the land you are about to purchase, and there is only a one-time premium to be paid for title insurance coverage.

There are two different  kinds of title insurance:

·  Owners and purchasers

·  Lenders or mortgagees

The owner’s title  insurance lasts as long as owner or heirs of the property have any interest in it, even after the property is sold.

The lender’s title  insurance serves as a security of the lender’s investment in the property,  similar to the lender demanding car insurance for their car loan.