Dear Purchaser, Congradulations on the purchase of your home!!  Purchasing a home is one of the largest investment decisions you will make in your lifetime and you want to protect it.   That is why you purchased your homeowner's insurance policy.  However, fire and wind are not the only dangers that threaten your investment and your homeowners policy will not protect you if your title to the property is questioned.  When you make your purchase you are not purchasing land and a house but the title to it.  The purchase of real estate is different from any other purchase you will ever make and the laws governing the ownership of the title to real estate can be complex.  Therefore, it is not possible to be certain that title to any real estate is free of defects which could limit your use of the land and the title to it.  For this reason I always urge home buyers to purchase an owners title policy and after reading the following paragraphs I think you will understand why.   WHAT IS TITLE INSURANCE? Basically, Title Insurance  is an insurance policy that helps protect the lender and/or you, the purchaser, against the dangers and hazards that exist in real estate titles.  Hidden defects in the title can escape the most thorough title examinations.  The title examiner often cannot find defects which are the result of forgery, fraud, lack of capacity of previous grantors, missing heirs, property rights of divorced individuals, the claims of children born after a will is made, deed and affidavits that where insufficient, and deeds or other documents that were improperly recorded.  These defects are but a few of the possibilities.  An owner's title insurance policy will give you the assurance that you and your investment are protected and indemnified against financial loss due to hidden title defects.   As a wise investor, do not rely on the opinions of friends, family, or well intentioned Realtors or brokers.  Do your homework, call us for more information, and think things through before you make your decision as to whether you will purchase an owner's policy.   The purchase of an owner's policy is money well spent. WHAT IS A LENDER'S POLICY? The Mortgagee's or Lender's title policy is a title policy that indemnifies only the mortgage/money lender.  Almost all lenders require title insurance to protect their investment (which is only the loan amount and which decreases as you pay off your principle).  The lender's policy affords you no protection.  However, when the lender's policy is purchased (by you on their behalf) a premium rate discount for your owner's policy is offered.  WHAT IS AN OWNER POLICY AND WHY DO I NEED ONE? The owner's title insurance policy indemnifies you and your heirs against unknown hazards which can exist in real estate titles.   Most people assume that when a title examination is completed and no defects are discovered that the title is clear of defects.  However, many defects can be hidden and even the most careful title examination will not uncover them.  These hazards can include forged deeds, forged mortgage or lien releases, documents executed by persons secretly married,  documents executed by persons who are of an unsound mind, deeds improperly delivered, deeds executed by minors, claims by unknown heirs, the list goes on and on.   With an owner's title insurance policy, the Title Insurance Company will defend you against any such claim, at no further cost to you.   The cost of an owner's policy is low but the level of protection and peace of mind it provides is high. HOW DO I PURCHASE AN OWNER'S POLICY? The closing attorney* that certifies your title and conducts your closing will include the premium for your Owner's Policy on your Settlement Statement, unless you inform him that you do not wish to purchase the policy.  The attorney is an agent for the title insurance company and he can only issue a title policy for a title that he has certified.  In Georgia, the title insurance policy premium does not include the fees associated with the title search, binder fee, or the attorney's certification of title, you will see those fees listed separately on the Settlement Statement.  Since the newspapers and television rarely, if ever, report on title disputes people tend to believe that such law suits never occur.  Title dispute cases generally take months or years before a judgement is passed down and such cases seldom make the news.  In truth, such cases are somewhat rare which is one reason the premiums are so reasonable.  On the other hand, tornadoes are rare yet we all keep our houses fully insured against such damage.  Although the "odds" that you will be faced with a title dispute is relatively small, the cost to you of such a dispute is very high.  If you won your case, you may be left with large attorney bills and if you lost you could lose your property.  Title insurance can idemnify you against such loses.  As a property owner myself, I have always purchased title insurance because I believe it is a good investment and offers me peace of mind for a small price.  However, the choice is yours. Disclaimer:  The information on this site is a public resource consisting of general knowledge and information about my practice and is not intended to provide legal advice.  The information is believed to be accurate and complete, but such is not guaranteed.   The laws of the State of Georgia can change due to court decisions or legislation at any time.   The lawyer(s) identified on this site are only licensed to practice law in the State of Georgia..  Any information contained within this site is intended to be specific to the State of  Georgia and may conflict with the laws and rules of other states.  If your property is not located in Georgia, please contact an attorney in your state .  None of the Information provided on this site will create an attorney-client relationship, nor will e-mails sent to the above attorney constitute the formation of an attorney-client relationship. All such relationships will be formed and established only by a written agreement executed by both parties. *David O. Chandler is an agent for First American Title Insurance Company through Attorney's Title Guaranty Fund, Inc.