RE Q&A: Do I Really Need Title Insurance?

If you pay for a title search, why do you also need title insurance? And if I’ve never heard of anyone that had a title insurance issue, why do I have to buy it?


Question: Over the years, I have owned several homes and have refinanced my mortgage many times. Each time I purchase a home or refinance the mortgage, I pay for a title search and title insurance.

I have never heard of anyone having an issue covered by title insurance. And if I pay someone to search my home’s title, why do I have to pay for insurance? – Jim

Answer: As an attorney who examines title, writes policies, and litigates title claims, I would never purchase a home without buying a title insurance policy.

There are too many issues that even the best title search cannot find, and compared to the cost of your home, the one-time price of title insurance is low.

There are good reasons lenders require title insurance to lend you money. The policy you buy as the owner and your lender’s required policy offer different coverage. A lender’s policy does not cover an owner’s claim and vice versa.