Imagine buying a new home. You excitedly take possession of your dream house and start to move in, only to find out later that the previous owner still has a claim on the property. It could happen without you even knowing it if they haven’t filed a quitclaim deed or if there are other liens on the property. Title insurance can protect you from this and other risks by ensuring that you are the legal owner of the property. Here’s why it’s important.


  1. Protects Your Investment in Your Home
    When you purchase a home, you make a substantial investment that you expect to pay off over time. However, many potential risks could threaten your investment. For example, what if the previous owner failed to pay their property taxes? What if there is an error in the public records? What if hidden liens or easements encumber the home? These are just a few of the many risks that could jeopardize your investment in a home. Title insurance protects you from these risks by providing financial compensation if any problems arise. In other words, title insurance gives you peace of mind knowing that your investment is protected.


  1. Protects You from Fraudulent Claims
    Unfortunately, there are people out there who will try to take advantage of you. They may file a false deed or claim to have an ownership interest in your property. If you don’t have title insurance, you could be forced to deal with these issues at your own expense. Title insurance protects you from fraudulent claims by providing legal defense and financial compensation if such a claim is made against your property.


  1. Protection from Losses
    While title insurance does protect against many risks, it’s essential to understand that there are some risks that it does not cover. For example, most title insurance policies will not cover losses caused by zoning changes or environmental hazards. It’s important to understand your title insurance policy’s limitations to ensure you’re adequately protected.


  1. Loan Collateral
    While title insurance is not required by law, lenders typically require it to get a loan because lenders want to ensure that their loan is protected in case of any problems with the title. As a result, most homebuyers opt to purchase title insurance even if they are not required. While it may seem like an unnecessary expense at the purchase, title insurance could save you thousands of dollars.



Though it may seem like an unnecessary expense at the time of purchase, title insurance is a critical safeguard against the potential risks of owning a home. By protecting homeowners against hidden claims and liens, title insurance provides peace of mind and financial security if property title problems are discovered down the road. For these reasons, any smart homebuyer should be sure to purchase title insurance before finalizing their purchase.