Protect Your Property Rights
Owner's title insurance is a one-time purchase at closing that protects your property rights for as long as you or your heirs own the home.
Protect Your Property Rights
Understand Your Most Important Protection
Title insurance is the only insurance that protects what already happened — hidden liens, fraud, and errors in public records that could threaten your ownership. Learn the difference between the two types and why the owner's policy is essential.
Your Rights Checklist
Federal law protects homebuyers at every stage. Know these rights before you close.
Right to Choose Your Title Company
Under the Real Estate Settlement Procedures Act (RESPA), Section 9, no seller can require a buyer to use a specific title company as a condition of sale. You can shop for the provider that best fits your needs.
12 U.S.C. 2608 (RESPA Section 9)
Right to 3-Business-Day CD Review
The TILA-RESPA Integrated Disclosure (TRID) rule requires your lender to provide the Closing Disclosure at least 3 business days before closing. Use this time to compare it to your Loan Estimate.
12 CFR 1026.19(f) (TRID Rule / Reg Z)
Right to Shop for Settlement Services
Your Loan Estimate includes a "Services You Can Shop For" section. You have the right to select your own providers for those services, including title insurance, pest inspections, and surveys.
12 CFR 1026.19(e)(1)(vi) (TRID Rule)
Right to File Complaints
If you believe a settlement service provider violated RESPA, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint or your state's department of insurance.
12 U.S.C. 2607 (RESPA Section 8)
Lender's Policy
Protects only the lender's investment. Required by most mortgage companies. Does NOT protect you as the homeowner.
Owner's Policy
Protects your investment for the life of ownership. One-time fee. Covers legal defense and financial loss.
What Does Title Insurance Protect Against?
Title searches reveal problems in more than one-third of residential transactions:
What Title Insurance Covers
Four of the most common claim scenarios an owner's title insurance policy protects against. These are illustrative examples of covered situations, not specific documented claims.
An unpaid mortgage, tax debt, or mechanic's lien from a previous owner surfaces after closing. An owner's title policy pays to clear the lien or defends your ownership.
A forged deed, falsified signature, or impersonated seller is used to transfer property fraudulently. Title insurance funds legal defense and covers losses if title is successfully challenged.
A long-lost heir or previously unknown party surfaces with a legitimate claim to the property. Your title policy pays the cost of defending your ownership in court.
A neighbor asserts rights to part of your property based on a survey error, easement, or encroachment. Title insurance covers legal costs and any resulting settlement.
How the Title Search Process Works
Before your title insurance policy can be issued, a title professional conducts a thorough examination of public records related to your property. This process — called a title search or title examination — is one of the most important steps in the closing process. According to ALTA, title searches reveal issues that need resolution in approximately one out of every three residential transactions.
Public Records Review
The title examiner searches county recorder's office records, court records, and tax records going back decades — often to the original land patent. They trace every deed, mortgage, lien, judgment, easement, and encumbrance that has ever been recorded against the property.
Chain of Title Verification
The examiner verifies an unbroken chain of ownership from the current seller back through every previous owner. Any gaps, irregularities, or missing links in the chain must be investigated and resolved before the title can be considered clear.
Lien and Judgment Search
Outstanding debts attached to the property are identified: unpaid property taxes, mechanic's liens from contractors, HOA liens, federal tax liens, and civil judgments against current or previous owners. These must be paid off or released before closing.
Title Commitment Issued
Based on the search results, the title company issues a title commitment (also called a preliminary title report). This document has two critical sections: Schedule A (lists the proposed policy details — owner, lender, purchase price, legal description) and Schedule B (lists exceptions — specific items the policy will NOT cover, such as existing easements, mineral rights reservations, or HOA covenants). Review Schedule B carefully: anything listed there is excluded from your coverage. Ask your title company to explain every exception and whether any can be removed before closing.
Issue Resolution (Curative Work)
If the search uncovers problems — missing signatures, unreleased mortgages, boundary disputes, estate issues — the title company works to resolve (cure) them before closing. This is one of the most valuable services title professionals provide.
Policy Issuance
Once all issues are resolved and the transaction closes, the title company issues the final title insurance policy. The owner's policy protects you; the lender's policy protects the bank. Your owner's policy remains in effect for as long as you or your heirs own the property.
What Your Owner's Policy Actually Covers
The current ALTA Owner's Policy lists specific covered risks. Click any risk below to see how title insurance protects you in detail.
Source: ALTA Standard Owner's Policy
Someone else owns an interest in your title
Example: A previous owner's ex-spouse claims they never signed away their ownership interest in a divorce. Your title insurance pays for the legal defense and covers any loss.
Click for more details
A document in the chain of title is forged or improperly executed
Example: A deed from 1998 was forged by someone impersonating the actual owner. Even though you bought in good faith, the fraud could void your ownership.
Click for more details
A document was not properly recorded or indexed
Example: A mortgage release was filed but never indexed by the county. The old lender's lien still appears on record.
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Title defects that prevent you from selling
Example: When you try to sell, the buyer's title search reveals an old judgment that makes your title 'unmarketable.'
Click for more details
Someone has an undisclosed easement on your property
Example: A utility company has a recorded easement allowing them to dig across your backyard — but nobody told you when you bought.
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Zoning violations by a prior owner
Example: The previous owner converted the garage into a rental unit without permits. The city demands you restore it.
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Unknown liens on your property
Example: A contractor who did work for the previous owner files a mechanic's lien for unpaid work.
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Lack of legal access to your property
Example: After closing, you discover your driveway crosses a neighbor's property and they demand you stop using it.
Click for more details
The Math: Why Title Insurance is Worth It
$1,750
Typical owner's policy cost
(on a $350K home at 0.5%)
$350,000
What your policy protects
(your full home value)
$50,000+
Average legal defense cost
for a title dispute (without insurance)
For a one-time payment of approximately 0.5% of your home's value, you get coverage for the entire time you own the property — including full legal defense costs. Without title insurance, a single title dispute could cost you tens of thousands in legal fees, even if you ultimately win. If you lose, you could lose your entire investment.
Cost & Your Right to Shop
Owner's title insurance typically costs between 0.5% and 1% of the purchase price — a one-time fee for lifetime coverage. Rates are regulated by each state's department of insurance. In some states (like Texas), rates are set by the state and are the same everywhere. In others, rates vary by company — which is why shopping matters.
Under the federal Real Estate Settlement Procedures Act (RESPA), you have the legal right to choose your own title insurance company. Your lender or real estate agent may recommend a provider, but you are not obligated to use them.
Tip:Ask about the simultaneous issue rate — when you purchase both an owner's and lender's policy from the same company at the same time, you typically get a significant discount on the second policy.
Filing a Claim
If you discover a concern about your property's title at any point during your ownership, contact your title insurance company promptly. Common triggers for claims include:
- -Someone claims ownership or an interest in your property
- -A lien or judgment appears that wasn't disclosed at closing
- -A boundary dispute arises with a neighbor
- -You discover an easement that restricts your use of the property
- -You try to sell and the buyer's title search reveals a defect
What to provide: Your property address, policy number (if available), description of the issue, and any relevant documents. Your insurer will investigate, provide legal defense if needed, and pay covered losses up to your policy amount.
