The Power of Title Insurance
There are a lot of line items in a closing statement that make your eyes glaze over—but title insurance shouldn’t be one of them. It’s one of the few costs that actually protects you. If you’ve ever wondered whether you really need it, here’s the no-nonsense breakdown of what title insurance does, what it covers, and how it could save you from major headaches down the road.
Should I Get Title Insurance?
When you buy a home, you’re not just buying walls, windows, and a backyard—you’re buying the legal right to own that property. And that’s where title insurance comes in.
Before closing, a title company will run a “title search” to confirm the property’s history—making sure there are no unpaid taxes, liens, ownership disputes, or long-lost heirs claiming a stake in your new house. But even with the most thorough search, things can slip through the cracks. That’s where title insurance steps in.
What Title Insurance Actually Does
Think of title insurance as your financial safety net. It protects you (and your lender) from future claims or legal issues tied to your property’s ownership history.
Here’s what it typically covers:
Errors in public records – A simple typo on a deed or missed filing can cause ownership disputes later.
Unknown liens – The previous owner might have unpaid bills that become your problem.
Fraud or forgery – If someone forged a signature in the past, title insurance helps cover legal costs.
Heirs or ex-spouses appearing later – Because sometimes, people come out of the woodwork claiming ownership rights.
Boundary or access disputes – Think fences in the wrong spot or shared driveways that weren’t properly recorded.
Types of Title Insurance
There are two kinds—Lender’s and Owner’s. Here’s the difference:
Lender’s Policy
If you’re getting a mortgage, this one’s required. It protects the lender’s financial interest in the home until the loan is paid off.
Who it protects: The bank.
Who pays: You (as the buyer), one time at closing.
Owner’s Policy
This one’s optional—but highly recommended. It protects you as the homeowner from any title issues that come up after you’ve closed.
Who it protects: You.
How long it lasts: As long as you (or your heirs) own the home.
Why it matters: If a claim ever surfaces, the policy covers your legal defense and reimburses you for losses.
Do I Really Need It?
Technically, you could skip the owner’s policy—but that’s kind of like saying you don’t need car insurance because you’re a careful driver. Sure, you could get lucky… but one surprise lien or ownership dispute could cost you way more than the one-time title insurance premium ever would.
Plus, title insurance premiums are a one-time cost (usually around 0.5% of the purchase price, depending on location and provider). You pay once at closing and you’re covered for life.
How to Get It
Title insurance is arranged through your escrow or title company before closing. Your lender will require a lender’s policy, and you’ll usually have the option to add your own owner’s policy at the same time. In most California transactions, both policies are issued together—easy, efficient, and one less thing to think about later.
The House Perspective
At The House, we’ve seen title insurance save clients from nightmare scenarios—missing deeds, surprise liens, even one case where an old family trust tried to reclaim ownership years later. Things worked out because the buyer was covered.
So yes, get the policy. It’s not glamorous, but it’s worth it. It’s the quiet kind of protection that keeps your dream home yours.
Common Myths About Title Insurance
Let’s clear up a few things that tend to confuse buyers (and even some seasoned homeowners):
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Not quite. Your lender’s policy only protects the bank’s interest—not yours. If a claim arises, your lender is covered, but you’re on your own unless you have an owner’s policy.
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Title searches are thorough, but they’re not foolproof. Clerical errors, missing heirs, or old liens can slip through. Title insurance covers those surprises after closing.
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It’s actually one of the least expensive parts of your closing—and the only one that lasts as long as you own the home. One payment, lifetime coverage.
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Sure, but dealing with it could mean hiring attorneys, fighting in court, and paying off someone else’s debt—all of which could have been avoided with a one-time policy.
Buying or selling in Marin?
We make sure every detail—legal, design, and otherwise—is buttoned up before you get the keys. Contact The House to get expert guidance every step of the way.
