Title insurance is a policy designed to protect you against financial loss if a defect or problem arises in your property’s title or ownership history.

It safeguards your ownership rights — ensuring that you truly own what you think you own, and that there are no hidden claims, liens, errors, or title defects that could challenge or undermine your property ownership.

• Owner’s Title Policy: Covers you, the homeowner — protecting your investment and ownership rights while you own the property and beyond your ownership.

• Lender’s Title Policy: Protects the lender’s interest; required if you finance the property. It does not protect you, the homeowner.

In many areas — including those served by the referenced title guide — it is customary for the buyer to pay for the Owner’s Title Policy.

Yes — even if you already have an Owner’s Policy, a new Lender’s Title Policy is often required for the new loan. The old lender’s policy will end when the previous mortgage is satisfied.

Title insurance helps guard against a variety of hidden or past problems, such as:

• Defects in the chain of ownership (e.g. missing or improperly executed deeds)

• Forged or fraudulent documents

• Unpaid taxes, liens, or unpaid judgments against previous owners

• Unknown or missing heirs claiming ownership or interest in the property

• Errors in public records (e.g. incorrect indexing or recording) and other clerical mistakes

For an Owner’s Title Policy — the coverage lasts as long as you own the property and extends beyond your ownership.

For a Lender’s Policy — it typically lasts only as long as the mortgage is in effect.

Title insurance is generally purchased through a one-time premium paid at closing. The cost typically depends on the value or purchase price of the property.

No — title insurance does not cover physical damage to the property (like fire, flood, or accidents). That type of coverage comes from homeowner’s insurance. Title insurance only covers title-related issues and risks tied to ownership.

Before issuing a policy, a title company conducts a search of public records to examine the history of the property — ownership transfers, liens, mortgages, judgments, etc.

However, even the most exhaustive search might miss certain hidden or improperly recorded defects (e.g. forged deeds, missing heirs, or clerical errors). Title insurance provides protection against such unforeseen or undiscovered risks.