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A title represents official ownership of a property. When you possess the title, you own that property and have full rights to use it. Title insurance protects the owner from claims against the property or defects in the chain of ownership

Title insurance protects against losses from title defects, liens against the property and claims of ownership by others. Essentially, it protects against problems that occurred in the past and gives you the “all clear” to purchase and own a property with confidence.

No. Title insurance protects against claims and lawsuits related to the legal ownership of a property. Homeowner’s insurance generally protects against fire, damage, theft or other physical losses, none of which are covered by title insurance.

Title insurance is not required by the State of Michigan, but a mortgage lender will usually require it to protect their investment (and yours). Generally, a property seller purchases title insurance for the buyer, and a buyer purchases title insurance for a lender as a condition of their loan.

The owner’s policy purchased by the seller is usually in effect for as long as you own the property. The lender’s policy purchased by a buyer expires when the mortgage is paid off. Consult your specific title insurance policy, as these guidelines may not be true in all cases.

Lenders require new title insurance at the time of refinancing. If you’re ready to refinance, contact Modern Title directly, as we can often offer lower costs than purchasing title insurance through your lender.