Back in July, I wrote about my opinion of always purchasing title insurance. One of the things I wanted to do now is go about explaining, basically, what title insurance is.

If you are borrowing money to purchase a home, the lender is going to require that you buy a title insurance policy. What it does is covers their interest in the property. By looking at past transactions and property deeds, the company performing the title search for the policy can see a (hopefully) straight and unbroken line or chain of ownership. This will make sure that throughout history, every transaction having to do with the property was handled properly and nobody, other than the person selling the property to you, has legal ownership of the property.