What Is Title Insurance—and Why It Matters

When you buy a home, you’re not just buying walls and a roof, you’re buying its legal history, too. That’s where title insurance steps in. It protects your investment by making sure no one else can claim ownership or financial interest in your new property.

The Hidden Side of Real Estate

Buying real estate involves more than just signing a deed. Every property comes with a history, and sometimes, that history isn’t squeaky clean. Old liens, unpaid property taxes, forged signatures, clerical errors, or undiscovered heirs can all pose serious legal threats to your ownership.

That’s why before you close, a title company performs a title search, an in-depth look at the property’s legal history, to ensure everything checks out. But even the most thorough search can’t uncover everything. Title insurance is your safety net against those hidden issues.

How Title Insurance Works

Title insurance protects you (and your lender) from future claims or legal disputes related to your property’s ownership. If a problem arises after closing, like a forgotten heir surfaces, or an old contractor file a lien, your policy covers the legal costs and financial damages.

There are two types of title insurance: a lender’s policy, which is usually required by mortgage companies to protect their investment, and an owner’s policy, which protects your own rights to the property. The lender’s policy doesn’t protect you, it only covers the loan. That’s why getting an owner’s policy is highly recommended, even though it’s optional.

Why You Shouldn’t Skip It

Some homebuyers see title insurance as just another line item in a long list of closing costs. But here’s the thing, it’s a one-time fee that protects what may be your biggest lifetime investment.

Imagine moving into your dream home only to find out someone else has a legal claim to it. Without title insurance, you could be on the hook for thousands in legal fees, or worse, lose the property altogether. With title insurance, you’re covered. It’s like buying peace of mind that lasts for as long as you own the home.

What It Covers, and What It Doesn’t

Title insurance covers problems that existed before you bought the property but weren’t discovered during the title search. This can include forged documents, undisclosed heirs, fraud, errors in public records, or zoning violations.

However, it doesn’t cover issues that arise after you purchase the property, such as failure to pay your own taxes or property damage. It’s designed to protect against past risks, not future ones.

One Payment, Lifetime Protection

Unlike other types of insurance, title insurance doesn’t come with monthly premiums. You pay a one-time fee at closing, and your coverage lasts for as long as you or your heirs have an interest in the property. It’s a small cost for powerful, lasting protection.

At Acorn Title, We’ve Got You Covered

Our job isn’t just to process paperwork, it’s to protect your peace of mind. We guide our clients through every step of the title process, explain the details in plain language, and make sure you understand what you’re signing. With Acorn Title, you’ll never feel like just another file on the desk.

Have questions about title insurance?

We’re happy to help.

📞 (210) 465-3033

📧 info@acorn-title.com