Title insurance is a one-time premium paid at closing that protects you — and separately, your lender — against undiscovered claims on the property: unrecorded liens, boundary disputes, forged deeds, missing heirs. Unlike other insurance, it looks backward, not forward.
Key Points
Lender's Policy
Required — protects the lender's interest.
Owner's Policy
Optional but strongly recommended — protects your equity.
Title Search
The title company clears any clouds before closing.
The Buyer's Checklist
- Lender's Policy
Required — protects the lender's interest.
- Owner's Policy
Optional but strongly recommended — protects your equity.
- Title Search
The title company clears any clouds before closing.