A lot of people probably do not realize that a title insurance company may exist and in fact what the heck a title company insures. Doesn’t matter who you are I reckon the one most important asset a person will ever own would be their home or some other major property investment.

Usually when a person buys a home they will get home insurance which is great as this will cover it against major problems like fire damage, the roof falling in and stuff like that, but is that enough. What if the agent didn’t do his job properly and someone came up and questioned some facet of the title and it turns out that there was actually defects in the title? This could cost you big time!

That is where title insurance companies comes in. More prevalent in the US it’s purpose is to protect an owner’s or even the lenders financial interest in the property and against any loss due to title defects. If someone was to come up with a lawsuit against the title the insurance would cover the cost to fight the lawsuit up to whatever cover the was agreed upon.

So as you can see, depending on where you live and what the local laws are, having title insurance would be as important as having home insurance. You may not ever need it but it’s handy to have in case anything goes wrong.