Taxes & Insurance
What is title insurance and do I need it?
Updated Jul 1, 2026
The short answer
Title insurance protects against problems with a property’s ownership history — such as liens, errors in public records, or competing claims — that surface after you buy. Lenders require a lender’s title policy to protect their interest; a separate owner’s policy protects your equity and is optional but often recommended. Unlike other insurance, it is a one-time premium paid at closing covering past events.
Key points
- Covers defects in the ownership record, not future damage.
- Lender’s policy is required; owner’s policy is optional.
- Paid once at closing.
Lender's vs. owner's policy
The lender’s policy only protects the loan balance. Without an owner’s policy, your own equity is not covered against a title claim. Title fees appear on your Loan Estimate and are partly shoppable.
Put this to work
Sources
Every claim above traces to a public government source.