Closing questions
What is title insurance?
Title insurance covers defects in a property's past: old liens, recording errors, forged deeds, undisclosed heirs. How the coverage works in New York.
What is title insurance?
Quick Answer
Every New York deed carries the mistakes of the owners who came before it. A mortgage paid off in 2009 whose satisfaction was never recorded. A judgment docketed against a prior owner who happens to share a name with a stranger. A deed signed by one heir when three of them had to sign.
The title search is meant to find those problems. The policy handles the ones a search cannot find, and the cost of defending your ownership if someone raises a claim years later. You pay the premium once at closing. There are no renewals and no monthly charge.
Coverage is not unlimited. Schedule B of the policy lists exceptions, and anything on that list sits outside the coverage. Standard exceptions in New York include matters an accurate survey would show, tenants in possession, and municipal charges that have not yet become liens. Your attorney should read Schedule B before you close, not after.
New York premiums come from a single rate manual that TIRSA files and the Department of Financial Services approves, so the number depends on the insured amount and the type of policy rather than on which agent issues it. Compare service and turnaround, not price.
Is title insurance the same as homeowner's insurance?
No. Homeowner's insurance covers events that happen after you buy: fire, water damage, theft. Title insurance covers events that already happened before you bought, and were missed or could not be found in the public record. One insures the building, the other insures your ownership of it.
How long does an owner's policy last?
For as long as you hold title, and it continues to protect your heirs and anyone who takes the property by will or intestacy after you. It does not transfer to a buyer when you sell. The buyer takes a new policy, though a prior policy can qualify the deal for a reissue rate.
What else should you read before closing?
In the glossary
- Title insuranceInsurance against loss from title defects that existed before the policy date. New York premiums come from a filed rate schedule, so the figure is ...
- Owner's policyTitle insurance protecting the buyer's ownership interest, issued for the purchase price with a single premium. Coverage continues while the insure...
- Title searchThe records examination behind a title report, covering the chain of title, encumbrances and court filings against the owners. It precedes the comm...
- Title exceptionA matter the title policy does not insure against, listed on Schedule B. Some exceptions are removed before closing and others are simply accepted ...
- Marketable titleTitle a reasonable buyer would accept, free of defects that would expose that buyer to litigation. Most New York contracts require the seller to co...
Questions this raises
- What does title insurance cover?Old liens, recording errors, forged deeds, undisclosed heirs, easements: what a New York title policy covers, what Schedule B excludes, and how cla...
- What is the difference between an owner's policy and a lender's policy?An owner's policy insures the buyer for the purchase price. A lender's policy insures the bank for the loan amount. How the two differ on a New Yor...
- Do I need an owner's title policy if my lender already requires one?A lender's policy protects the bank, not you, and ends when the loan is paid. What an owner's policy adds on a New York purchase, and what it costs...
- How much does title insurance cost in New York?NY title premiums come from the TIRSA rate manual approved by DFS, so every licensed agent charges the same. What actually changes your closing num...
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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.