MORTGAGE GLOSSARY
What Is Title Insurance?
The short definition
Title insurance protects against financial loss from problems with a property's ownership history — things like undisclosed liens, ownership disputes, or errors in public records — that surface after closing.
Two policies, not one
Lender's title insurance protects the lender's investment and is typically required. Owner's title insurance is optional in some states but protects the buyer directly, and is worth understanding rather than skipping automatically.
Why it matters
A title search happens before closing to catch these issues in advance, but title insurance is the backstop if something was missed. It's a one-time cost at closing, not an ongoing expense.
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