What's title insurance and why do you need it?

Title insurance protects against problems with ownership of the property that weren't found during the title search, such as liens, errors in public records, or forged documents. A lender's policy protects the lender and is usually required with a loan. An owner's policy protects you, and it's a one-time cost paid at closing. It's not common for title insurance to come into play in a dispute, but it can happen, and without it, the consequences can be severe.