Title Insurance: What It Actually Protects Against

Title insurance protects against defects in a property's legal title — things like fraud, forgery, errors in public records, unknown liens from a previous owner, or boundary/survey disputes — that could surface after you've already closed.

It's typically a one-time premium paid at closing (not a recurring cost), and both an owner's policy (protecting you) and a lender's policy (protecting your mortgage lender) are commonly required, sometimes bundled together.

It doesn't cover physical problems with the property itself — that's what a home inspection is for. Title insurance and a home inspection protect against two entirely different categories of risk, and skipping either to save money leaves a real gap.