Land records · Parcel maps · October 5, 2026
What Is Title Insurance? Owner's vs Lender's Policy
What is title insurance? A one-time policy that covers losses from past title defects like forged deeds or missed liens. Owner's vs lender's coverage.
What is title insurance? It is a policy that protects a buyer or lender against financial loss from problems with a property’s title that existed before the purchase but were not found, or could not be found, in the public records. Unlike most insurance, which covers future events, title insurance looks backward. You pay a single premium at closing, and the coverage lasts as long as you or your heirs hold an interest in the property. This page is general land-records background, not legal or insurance advice.
What problems it covers
Title policies vary, but standard coverage typically includes losses from:
- Forged or fraudulent deeds somewhere in the chain of title.
- Recording errors or misindexed documents.
- Undisclosed heirs who later claim an ownership interest.
- Liens missed in the title search, such as old mortgages, judgments, or tax liens.
- Deeds signed by people without legal capacity or authority.
- Defective acknowledgments or improperly executed documents.
If a covered claim arises, the insurer usually pays to defend your title in court and covers losses up to the policy amount.
Owner’s policy vs lender’s policy
| Feature | Owner’s policy | Lender’s policy |
|---|---|---|
| Protects | The buyer’s ownership interest | The lender’s mortgage interest |
| Required? | Usually optional | Almost always required with a mortgage |
| Amount | Usually the purchase price | Usually the loan amount |
| Ends | When you no longer hold an interest | As the loan is paid down and paid off |
A lender’s policy does not protect the owner. Buyers who skip the owner’s policy can be left paying their own legal costs if a title problem surfaces. Who pays for each policy depends on local custom and the purchase contract.
How title insurance works at closing
- The title company searches public records: deeds, mortgages, liens, judgments, and court cases tied to the property and the parties.
- It issues a title commitment listing requirements to clear before closing and exceptions it will not cover. See what is a title commitment.
- Problems are cured, such as paying off old liens or getting missing signatures.
- The policy is issued after closing, with a schedule of exceptions.
What it usually does not cover
- Listed exceptions in the policy, such as recorded easements, covenants, or specific liens.
- Survey matters, unless survey coverage is added, often by endorsement and a current survey.
- Problems you created or knew about and did not disclose.
- Zoning and building code violations, in most standard policies.
- Events after the policy date.
Read the exceptions page closely. That is where most of the real limits live.
Endorsements
Endorsements add or adjust coverage for specific risks, such as access to a public road, survey accuracy, or certain covenant violations. Availability depends on the state and insurer.
How much does it cost?
Premiums are typically based on the policy amount and are regulated or filed with state agencies in many places. Some states set rates; others allow competition. Ask the title company for a quote and a breakdown, since search and settlement fees are often separate from the premium.
Bottom line
Title insurance protects against hidden title defects from the past, such as forgeries, missed liens, and recording errors, for a one-time premium. Lenders require their own policy, but only an owner’s policy protects the buyer. Review the commitment and exceptions before closing, and look up parcel records yourself on the Platbookmapper map.
What is title insurance FAQ
Is title insurance required?
Lenders almost always require a lender’s policy. An owner’s policy is usually optional but protects the buyer’s equity.
How long does title insurance last?
An owner’s policy generally lasts as long as you or your heirs hold an interest in the property.
What does title insurance not cover?
Listed exceptions, many survey matters, zoning violations, problems the owner created or knew about, and events after the policy date.
Is title insurance a one-time payment?
Yes. It is usually paid once at closing.
Who pays for title insurance?
It depends on local custom and the purchase contract. Sellers pay for the owner’s policy in some areas and buyers in others.