Why Homebuyers Need Title Insurance—Even When It’s Optional

When you’re buying a home, the list of expenses can feel overwhelming—especially those that are “optional.” But owner’s title insurance isn’t just another fee. It’s a one-time investment that can protect you from unexpected legal and financial risks for as long as you own your property. 

Even though it’s not required by law, here’s why it’s strongly recommended. 

photo: Douglas Sheppard

What Is Title Insurance? 

Title insurance protects you from financial loss due to title defects—issues with the legal ownership of a property that may not be discovered until after closing. 

It covers things like: 

• Errors or omissions in public records 

• Unknown heirs claiming ownership 

• Forged deeds or fraudulent transfers 

• Unreleased mortgages or liens 

• Boundary or access disputes 

• Unpaid property taxes 

While your title company works to find and clear these issues before closing, some problems may only surface later—and that’s when title insurance steps in. 

Lender’s Title Insurance vs. Owner’s Title Insurance 

If you’re using a mortgage to buy your home, your lender will require title insurance—but that policy only protects the lender’s interest in the property. 

To protect your equity and ownership rights, you need your own owner’s policy. 

Real-Life Scenario 

Imagine this: You close on your home and move in. Six months later, someone shows up with a legal claim to the property—saying their family member never properly transferred it. Without title insurance, you could face a costly legal battle or even lose your home. 

With owner’s title insurance, your legal fees and potential losses are covered. 

One-Time Cost, Lifetime Coverage 

Unlike most insurance, title insurance is paid once at closing—with no monthly premiums. It protects your ownership for as long as you (or your heirs) hold an interest in the property. 

The cost varies based on the purchase price, but in most cases, it’s a small percentage of your overall closing costs—and a huge return on peace of mind. 

How We Help 

At Title Stream, we explain title insurance clearly and offer policies tailored to your property and loan type. We also perform a thorough title search and work to resolve issues before closing, so your policy is a true last line of defense—not your first. 

Protecting your new home means more than just locking the front door—it means making sure you truly own what you’ve paid for. Owner’s title insurance does just that.