Why Title Insurance Matters in Real Estate

Title insurance protects property buyers and lenders from financial losses caused by defects in the property’s title—such as unpaid taxes, liens, fraud, or ownership disputes—stemming from past issues. It comes in two types: owner’s title insurance, which protects the buyer’s ownership rights, and lender’s title insurance, which safeguards the lender’s interest up to the mortgage amount. Coverage includes legal costs and losses due to undiscovered title defects, requires a one-time premium, and lasts for the duration of ownership. However, it does not cover physical damage or pre-known issues.