The majority of real estate transactions go through title companies who handle most of the physical paperwork when it comes to buying and selling a home, at least in the state of Colorado. Looped into the overall costs of purchasing a home is title insurance. But what exactly is title insurance and why do you need it? Title insurance focuses on risk prevention not risk assumption which is what the majority of insurance policies are for. It is estimated that as many as 36% of real estate transactions have a defect in title. Title insurance protects the homeowner from claims against ownership.
It is a one-time payment purchased with the cost of your property and protects you and your future heirs for the lifetime of ownership. Your insurance coverage will pay the costs associated with defending your title to ownership should any future claims arise against your property.
