What Is Title Insurance?
Title insurance protects you and your lender against legal claims on your property's ownership. A title search checks public records for issues like liens, disputes, or errors. Title insurance covers anything that might have been missed — it's a one-time premium paid at closing.
Key Facts
- There are two types: lender's policy (required) and owner's policy (optional but recommended).
- Title insurance is a one-time cost — not a recurring monthly fee.
- In California, the seller traditionally pays for the owner's policy (varies by county).
- Costs typically range from $1,500 to $3,500 depending on the home price.
- Title insurance protects against fraud, forgery, undisclosed heirs, and recording errors.
Real-World Example
You buy a home and years later, a contractor files a claim saying the previous owner never paid them — and they have a lien on the property. Your title insurance covers the legal defense and resolution at no cost to you.
Why It Matters
Title issues are rare but devastating when they happen. Title insurance is relatively inexpensive for the peace of mind it provides. Always get an owner's policy — the lender's policy only protects the bank, not you.
En Español
El seguro de título te protege a ti y a tu prestamista contra reclamos legales sobre la propiedad de tu casa. Una búsqueda de título revisa registros públicos en busca de gravámenes, disputas o errores. El seguro de título cubre cualquier cosa que se haya pasado por alto — es una prima única que se paga al cierre.