Title Insurance: What is it and Do I Really Need It?

When we hear the word insurance typically we are skeptical. However, when it comes to title insurance I would say for the one time nominal cost it's worth getting.

Title insurance offers protection by insuring against potential legal claims and property ownership issues that may arise in the future. Let's take a deeper dive into what title insurance is, why it is important, and how it benefits you.

What is Title Insurance?

Title insurance is a form of indemnity insurance that protects homebuyers and lenders against financial loss resulting from defects in a property's title or ownership. Unlike other types of insurance that protect against future events, title insurance provides coverage for past events or claims that may arise related to the property's history.

Why is Title Insurance Important?

1. Protecting your Investment: Title insurance protects the homeowner's investment by insuring against any potential undisclosed liens, encumbrances, or defects in the property's ownership. These issues could prevent the homeowner from having clear and marketable title to the property.

2. Mortgage Lenders' Protection: Lenders require title insurance to protect their interests in the mortgaged property. It ensures that they have a valid mortgage lien and safeguards against any claims that could jeopardize their security.

3. Resolving Disputes: Title insurance provides coverage for legal expenses in the event of a title claim. It can help cover the cost of defending against a claim and resolving any dispute, saving homeowners and lenders from potentially expensive and time-consuming legal battles.

Benefits of Title Insurance

1. Peace of Mind: Title insurance offers peace of mind to homeowners and lenders by assuring them that the property's title is clear and free of any undiscovered issues. It eliminates the risk of unexpected financial burdens that could arise from unknown claims or outstanding debts.

2. Cost-Effective Protection: Title insurance is a one-time premium payment made at the time of property purchase. Considering the potential risk and the costs associated with title claims, having title insurance is a cost-effective way to protect both buyers and lenders.

3. Transferability: Title insurance is transferable. This means that if the homeowner decides to sell the property, the title insurance can be transferred to the new owner, providing them with the same protection and peace of mind.


Title insurance is an essential safeguard for homebuyers to protect their investment in a property. By providing coverage for potential title defects, liens, and other ownership issues, it offers peace of mind and financial protection. 
The one-time premium payment makes it a cost-effective solution, and its transferability adds value to the property in the long run. When purchasing a property, it is wise to consult with your lawyer or notary to understand the options available and make an informed decision. With title insurance, homeowners can proceed with confidence, knowing that their investment is well-protected.