Title insurance is a protective measure against financial loss from defects in the title to real estate. There are two types: owner’s title insurance, which protects the homeowner, and lender’s title insurance, which protects the lender.
Title insurance covers potential damages or legal costs arising from any discrepancies or defects in the title of the property you’re purchasing, such as outstanding liens, fraud, or errors in public records.
While lender’s title insurance is typically required in a mortgage, owner’s title insurance is optional but highly recommended for added protection.