Title insurance policy is very common policy not only in United States but also in UK, France and in fact all parts of Europe. In general title insurance policy is done in order to ensure the security of property we buy or loan, which we lend. It makes sure that the property, which we are buying, is free from all problems. It ensures that loan which we are given will be returned in future.
There are two types of Title Insurance policy:

• Owner’s policy
• Lender’s policy

When the owner buys a property he has to make sure that the property belong to him only and not to anybody else. He can go for owner’s insurance policy. In future he will be refunded with all money if he faces any problem. Similarly lender can go for lender’s policy. If the borrower does not give back his money, he will get back all money. Sometimes both the party goes for separate policy. In that case suppose the investment is $300000 and the loan amount is $100000, in total $400000. Then the owner will get back $ 400000 whereas the lender will get back $100000. However if they opt for dual policy then the owner will get $300000 and the lender will get back $100000.

Right to choose title insurance company:
According to real estate settlement procedure act (RESPA), no homeowner can be bound to select any company for title insurance by bank or broker. Homeowners on most of the occasions depend on the bank or the broker for this but they are not bound to. Bank or a broker can be heavily penalized if they are found guilty on this behalf.

Cost of the title insurance:
There are two kinds of charges with a person has to pay during their path towards title insurance.

• Premium charges
• Service charges

Some states do not charge the premium charges. Service charges comprise of some hidden expenses like examination fees for title examination or fees for searching public records.

Advantages of title insurance:
In fact everyone take advantage from title insurance. Owner’s money is insured. So is lenders money.  Company earns the most profit than any other kind of insurance. According to ALTA the title insurance company has to just pay $600 million as a claim, which was just 14 percent of total premium, which was $16 billion. All the other types of insurance have to pay around 25% of premium charges as claim.