Buying a Home
What is title insurance and do I need it?
By Steve Lockhart
The short answer
Title insurance protects you against problems with the legal ownership of the home, and in a financed purchase the lender's title policy is typically required.
Full answer
Title insurance protects you against problems with the legal ownership of the home, and in a financed purchase the lender's title policy is typically required. It covers issues such as a hidden lien, an undisclosed heir with a claim, a forged document in the chain of title, or an error in the public records that turns up after you own the home. The title company searches the public record before closing to clear what it finds, and the insurance then protects against what the search could not reveal. In Nevada, buyers usually pay for the title insurance as part of their closing costs, and the one-time premium covers you for as long as you own the property. It is an important protection, and I make sure you understand the policy, the exceptions, and what the premium actually covers before you close.
Go a little deeper
Frequently asked
Questions buyers often follow up on
If the title search comes back clean, why still pay for insurance?
Because a search can only show what is in the public record, and some defects cannot be seen in it: an heir who never signed a document that was filed in the wrong county, a claim that surfaces later. Insurance covers the risk the search cannot eliminate, and it protects you for as long as you own the home. For the cost of a one-time premium, most owners consider it money well spent.
Who pays for title insurance in a Nevada purchase?
In Nevada it is common for the buyer to pay the lender's title policy, and often the owner's policy as well, with the premium shown on the buyer side of the closing statement. The split can be negotiated, so the arrangement varies deal by deal. We will read the escrow statement together so you know who pays what and why before you sign.
What does the title company do if a problem appears later?
Depending on the policy and the claim, the title insurer either defends the claim and covers the covered loss, or takes steps to clear the title. Policies also list exemptions, matters they do not cover, and reading those with wide-open eyes matters as much as reading the coverage. I help you understand both the protection and the fine print.
The Lockhart Method
The Lockhart Method
Your Home | My Strategy | Proven Results
My strategy: count the premium as the quiet protection of your ownership, the one you hope to never use. I read the policy and its exceptions with you so you know what is covered.
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