What Is Title Insurance and Why Do You Need It?

Unlike other forms of insurance that protect against future events, title insurance protects you from past ones. It defends your ownership rights against claims that may arise from before you purchased the property. These can include things like forged documents, undisclosed heirs, mistakes in public records, or liens from unpaid taxes or contractors.

There are two types of policies: a lender's policy, which is usually required and protects the lender's investment, and an owner's policy, which protects your equity in the property. While the owner's policy is often optional, it is highly recommended. For a one-time fee paid at closing, it provides you with protection and peace of mind for as long as you or your heirs own the property.