What Is Title Insurance and Why Is It Important

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What Is Title Insurance and Why Is It Important

1. Title Insurance Covers Hidden Risks in a Home’s History

When you buy a home, you’re not just buying the walls and roof—you’re also taking ownership of the property’s legal history. Title insurance protects you and your lender from:

  • Undiscovered liens from past owners
  • Ownership disputes or missing heirs

Errors in public records or forged documents
In short, it ensures the seller had the legal right to sell you the property—and protects you if someone challenges that after the deal closes.

2. There Are Two Types of Title Insurance

  • Lender’s Title Insurance: Protects the mortgage company in case there’s a title issue.
  • Owner’s Title Insurance: Protects you, the buyer, from personal loss or legal battles related to title claims.

Lender’s insurance is usually required, but owner’s title insurance is optional—and absolutely worth it. You’ll pay for both at closing, and it’s just one upfront fee that covers you for as long as you own the home.

3. It’s a One-Time Fee That Could Save You Thousands

Here’s the best part: you only pay for title insurance once, at closing. There are no monthly or annual premiums. And if something ever does pop up—like an unpaid tax bill from 15 years ago—you’re covered. No court dates, no surprise legal bills. Just peace of mind for the long haul.

Want to Make Sure You’re Fully Protected at Closing?

📘 Download our free “First-Time Buyer Game Plan” eBook — includes a breakdown of closing costs and protection options
💬 Chat live with our team to ask about title insurance and what’s required in your area
📞 Or schedule a quick call with a Stairway Mortgage advisor to review your closing strategy

At Stairway Mortgage, we don’t just get you to the finish line—
we make sure your foundation is protected every step of the way.

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