This week we talked with Heather J. Metzger of Jenny Pruitt and Associates, Realtors. Heather was a paralegal for 13 years prior to her career in real estate.

Q: What is title insurance?

A: A title insurance policy insures that a parcel of property has title clear of any defects. Most insurance policies protect against what might happen in the future. Title insurance protects the new homeowner against what might have happened in the past. There are two types. The first is owner's title insurance, which fully protects the purchaser's down payment and future equity in the home should a problem arise with the title that was not uncovered during the title search. The second type is purchased by the lender, and the policy will cover the dollar amount it is lending to the buyer.

Q: How long does the policy last?

A: This policy is purchased for a one-time fee at closing and its cost depends on the purchase price of the home. The policy lasts as long as you or your dependents have an interest in the property. In addition, the policy covers any legal fees involved in defending a claim to your title should a defect be discovered after the purchase.

Q: What if I don't purchase the coverage?

A: When you purchase a home, the closing attorney will ask a title company to run a title search on the property to search for any defects on the title involving past owners, such as unpaid property taxes, liens, boundary disputes, etc. Even the most meticulous searches can miss a defect. Without insurance, you place yourself at risk to lose all the equity in the property or even the property itself. You would also be responsible to pay all the legal fees in defending your property.