Title insurance is a policy that protects a buyer or lender against losses from defects in the property’s title.
Title insurance is typically purchased at closing as a one-time premium. A lender's policy protects the loan, while an owner's policy protects the buyer's investment. It covers issues such as undisclosed liens, errors in public records, or ownership claims that were not discovered before closing. The title commitment lists exceptions, and a survey helps identify boundary or easement issues. Review the commitment early in due diligence so problems can be resolved before the deadline.