Title insurance is a specialized form of insurance designed to protect property buyers and mortgage lenders from financial losses related to defects or disputes in a property’s legal title. Unlike other types of insurance that protect against future events, title insurance covers risks that may have occurred in the past, such as errors in public records, unknown liens, forgery, or missing heirs who could claim ownership. When you purchase a home, a thorough title search is conducted, but even with due diligence, hidden issues can still surface later. This is where a title insurance company in US steps in providing a financial safety net that ensures your ownership rights are secure.

A title insurance company in the US typically offers two types of policies: one for the lender and one for the buyer (owner’s policy). The lender’s policy is usually required when taking out a mortgage and protects the lender’s investment in the property. The owner’s policy, on the other hand, is optional but highly recommended, as it protects the homeowner’s equity in the property. These companies play a crucial role in real estate transactions by ensuring that the title is clean and that any potential legal costs or losses related to ownership disputes are covered. In essence, title insurance brings peace of mind to what is often the largest financial investment in a person’s life.