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How is Title Insurance Different from Other Types of Insurance?

Title Insurance Differences from Other Insurance


How is Title Insurance Different from Other Types of Insurance?


The purpose of having a title insurance policy is to remove the risk of unforeseen problems from past events. Regardless of the vast amounts of due diligence by the Central Illinois title company you’re working with, there can be unreported problems that expose themselves from the past. Title insurance seeks to protect against problems that have previously occurred, but were unknown to the seller & buyer. While other types of insurance focus on protecting future unforeseen events from occurring, title insurance protects against previous unidentified events.


Have More Questions? Speak with a Title Insurance Professional

Two Types of Policies

There are two main types of title insurance policies: owner’s policy & lender’s policy. An owner’s policy gives confidence to the buyer of the property that it is clear of all past complications that could arise related to the home. These include liens, defects, and encumbrances from previous owners that were not discovered during the public records search and investigative research performed by the title insurance company.


A lender’s policy protects the lender & loan purchaser if the loan is ever sold. This is very common in the secondary mortgage market, with large companies purchasing home loans. They also want to make sure the title doesn’t come with any complications down the road.


You can read more about the two types of title insurance here


Why Do You Need Title Insurance?

Title insurance is essential when purchasing a home because there may be a complicated history with the property that the seller may not disclose or even know about! While most of the title insurance fee often goes directly to paying the real estate attorney to perform the investigative work, it will often also cover your interests should a complication present itself down the road while you own the property. The last thing you will want to deal with is having a long-lost heir to the property show up at your doorstep 5 years from now and claim they have rightful ownership.


Each situation is different and you will certainly want to speak with a trusted real estate attorney in Central Illinois when buying your next home.


Schedule a time to sit down and talk with a member of the Patrick O’Rourke Real Estate Legal team. 


Table of Contents


What is Title Insurance & Why Do I Need it?

What Does it Mean if My Property Has a Lien Against it?

The 2 Types of Title Insurance: Lender vs. Owner

What Exactly Does Title Insurance Cover?

How Much Does Title Insurance Cost?

How is Title Insurance Different From Other Types of Insurance?

Title Insurance FAQ's

What to Expect at Closing


Brought to you by: 

Patrick J. O'Rourke - Attorney at Law

(309) 585-0714

The Best Real Estate Attorney in Bloomington-Normal, Champaign-Urbana, Peoria, Springfield, and Central Illinois


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