Posted May 13, 2025 in Blog / Education
What Is Title Insurance – And Why You Absolutely Need It When Buying a Home
Buying a home is exciting—but let’s face it, the paperwork can feel endless. Between appraisals, disclosures, and mortgage documents, one thing that often gets overlooked is title insurance. But it’s actually one of the most important safeguards in the entire process.
So, what is it?
What Is Title Insurance?
In simple terms, title insurance protects you from issues tied to the legal ownership of the home. When you buy a home, you’re not just buying the property—you’re also inheriting its legal history. That could include:
- Outstanding liens from unpaid taxes or contractors
- Disputes over property boundaries
- Unknown heirs with claims to the home
- Forged or incorrect legal documents from the past
If something like this comes up after you’ve closed, title insurance kicks in to cover legal fees or losses. Think of it like a security blanket for your ownership rights.
Is It Required?
If you’re using a mortgage lender (and most people are), then lender’s title insurance is typically required. This protects the lender’s investment in the property. But here’s the thing—you’ll also want an owner’s title insurance policy to protect you, the homeowner.
It’s usually a one-time fee paid at closing and stays in effect as long as you own the home. For most people, it’s a no-brainer.
Why It Matters
Imagine this: You’ve just moved in, painted the walls, and hosted your first backyard barbecue. Then you get a letter saying someone else has a legal claim on your property because of an old inheritance dispute. Without title insurance, you could be on the hook for thousands in legal costs—or even lose your home.
Title insurance helps avoid that nightmare.
Do I Still Need a Title Search?
Yes, and good news—your title company will handle this for you. A title search uncovers potential issues before closing. The insurance is there just in case something slips through the cracks. It’s the backup plan you hope you never need.
At Fairway Heartland Branch, we walk you through every part of the mortgage process—including helping you understand what protections like title insurance really mean. We don’t just close loans—we create peace of mind.
If you’re shopping for a home or just have questions about your next move, our team is here to help.
