Do I Need Title Insurance When Buying a Home?

Ian Keay

May 29, 2026

But my lawyer searches title, right?

Buying a home is one of the largest financial commitments most people will ever make. During the closing process, your lawyer will review numerous documents, explain closing costs, and may recommend that you obtain title insurance.

 

Many clients ask the same question: If my lawyer is already checking title, why do I need title insurance?

 

The answer is that title insurance protects against certain problems that even the most careful title search may not uncover.

 

1.   What Is Title Insurance?

 

Title insurance is a policy that protects homeowners and mortgage lenders against losses arising from problems affecting ownership of a property. Unlike car or home insurance, which protects against future events, title insurance primarily protects against issues affecting title that exist at or before closing and that are unknown at the time the property is purchased. The policy is purchased once during the closing process and generally remains in place for as long as you own the property.

 

2.   What Does Title Insurance Cover?

 

While coverage varies depending on the insurer and policy, title insurance commonly protects against:

 

  • Real estate fraud, including fraudulent mortgages or transfers of title
  • Errors in land registry records
  • Certain undisclosed liens, encumbrances or claims affecting the property
  • Boundary disputes and survey problems
  • Encroachments, such as a fence, garage or shed crossing a property line
  • Unpaid property taxes or certain utility charges that were not discovered before closing
  • Missing signatures, forged documents, or other defects affecting ownership

 

Many policies will also cover legal fees incurred in defending your ownership rights if a covered issue arises.

 

Title insurance does not cover every problem that may arise with a property. Coverage is subject to the terms, conditions and exclusions contained in the policy. For example, issues that are known to the purchaser before closing or matters specifically excluded by the policy may not be covered.

 

3.   Doesn't My Lawyer Already Search the Title?

 

Yes.

 

A title search is one of the most important parts of a real estate lawyer's job. Your lawyer reviews public records to confirm ownership of the property and identify issues that may affect your rights as a buyer. However, a title search can only reveal information that appears in the public record. Some problems may not be discoverable through a standard title search, including:

 

  • Forged or fraudulent documents
  • Administrative or recording errors in land registry records
  • Survey inaccuracies
  • Certain unregistered interests affecting the property

 

Title insurance helps protect you against these types of hidden risks. In many cases, title insurance can also make the closing process more efficient by allowing certain minor title issues to be insured rather than requiring lengthy and expensive corrective work before closing.

 

4.   Is Title Insurance Required?

 

Title insurance is not required by law. However, if you are obtaining a mortgage, your lender will almost always require title insurance to protect its interest in the property. It is common for buyers to purchase an owner's title insurance policy at the same time so that both the lender and the homeowner are protected.

 

5.   What does Title Insurance Cost?

 

The cost of title insurance depends on the value of the property and the type of coverage being purchased. For most residential purchases, the premium is usually a few hundred dollars and is paid once at closing. There are no annual premiums or renewal fees – only a one-time, up-front cost.

 

6.   Is Title Insurance Worth It?

 

For many homeowners, title insurance provides peace of mind at a relatively modest cost. Although serious title problems are uncommon, when they do occur they can be expensive and time-consuming to resolve. A title insurance policy can help protect you from unexpected legal expenses and financial losses arising from covered title issues.

 

7.   Final Thoughts

 

A title search and title insurance serve different purposes. Your lawyer's title search helps identify known issues before closing, while title insurance protects against certain risks that may not be discovered until after you take ownership of the property. If you have questions about title insurance, speak with your real estate lawyer. They can explain the coverage available and help you decide whether it makes sense for your particular purchase.

 

-      Ian Keay

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