The Process

Title Insurance: What It Is and Why You Need It

November 2025 · 4 min read

Title is just the legal right to own your home. Title insurance protects against problems with that right, like an old unpaid lien, a paperwork error, or someone claiming a stake in the property.

Two kinds of policies

Lender's policy: protects the lender, and is usually required
Owner's policy: protects you, and is optional but recommended

What it can cover

If a hidden claim surfaces after you buy (an unknown heir, a forged signature in the chain of ownership, or an unpaid tax from a past owner), title insurance can cover the legal costs and your financial loss.

How it is paid

Title insurance is a one-time cost paid at closing, not a monthly bill. The owner's policy then protects you for as long as you own the home.

The owner's policy is optional, but it is a small one-time cost for real peace of mind. It is usually worth it.

This article is general education, not financial, legal, or tax advice, and not a commitment to lend. Loan programs, rates, and requirements vary by lender, county, and borrower and can change. Talk with a licensed loan officer about your specific situation.

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