June 8, 2026

When you buy a home, you expect a clean slate. But what happens if a claim surfaces on your property after closing that no one knew about? That is exactly what title insurance is designed to protect against.

A title policy covers issues tied to a property's legal ownership history that may not turn up during a standard public records search. We are talking about things like old unpaid contractor liens, boundary disputes, errors on the deed, conflicting inheritance claims, or even forged documents from a previous transaction. Some of these problems can trace back years or even decades.

There are two types of title insurance you will encounter in a real estate transaction:

The lender's policy protects the mortgage company and is required any time you take out a home loan. The buyer typically pays for this as part of closing costs.

The owner's policy protects you as the buyer. It is optional but highly recommended. It covers the full purchase price of the home and stays with you for as long as you own the property. In many markets, the seller pays for this at closing.

Unlike homeowners insurance, title insurance is a one-time upfront cost, not an ongoing premium. For most buyers, both policies combined run roughly 0.5% to 1% of the purchase price.

At Mode Title, guiding buyers and sellers through this process with clarity and confidence is what we do. Whether you are purchasing your first home or your fifth, understanding what title insurance covers and why it is there gives you real peace of mind on closing day.

For a deeper dive into how title insurance works, visit the full article on Forbes: https://www.forbes.com/advisor/mortgages/title-insurance/