Definition
Title insurance is your protection against ownership disputes and hidden liens discovered later. You pay once at closing and are protected indefinitely.
Where you’ll meet it
What happens after they say yes?
See it in Buying my first home · Step 5About this term
Title insurance ensures you own the property free and clear of liens or previous owner disputes. The title company searches public records for any claims against the property. Title insurance costs typically 0.5-1% of the purchase price and is a one-time payment.
Pro Tip
Don't waive title insurance. It protects you from undiscovered issues.
Example
Title insurance protects you if a previous owner's creditor tries to claim the house or if an old lien surfaces years later.