Buying a home is exciting—but it also comes with legal and financial details that can be easy to overlook. One of the most important protections at closing is title insurance. It’s not as flashy as new paint or a renovated kitchen, but it can save you thousands and protect your ownership if past issues surface after you move in.
In this guide, we’ll break down what title insurance is, what it covers, and when you need it—plus how LibTitle makes the process simple and stress‑free.
What Is “Title,” Exactly?
Your home’s title is the legal record that confirms you’re the rightful owner. Over decades, a property can pick up all kinds of baggage—unpaid taxes, mechanics’ liens from past contractors, judgment liens, boundary disputes, recording errors, or even fraudulent transfers. If one of these issues resurfaces, it can threaten your ownership or force you into expensive legal battles.
Title Insurance: Your Ownership Safety Net
Title insurance protects you against unknown, pre‑existing defects in the property’s history. Unlike other types of insurance that protect against future events, title insurance defends your ownership from the past. There are two common policies:
Owner’s Policy: Protects you (the buyer) for as long as you own the home. It covers legal defense costs and potential losses if a valid claim is made against your title.
Lender’s Policy: Protects the mortgage lender. If you finance your purchase, your lender will almost always require this.
Pro tip: The Owner’s Policy is optional but highly recommended. It’s a one‑time cost paid at closing and provides long‑term peace of mind.
What Kind of Problems Can Title Insurance Cover?
Here are real‑world examples title insurance is designed to address:
Unreleased liens (e.g., an old contractor bill that was never properly removed)
Boundary or easement disputes (fences, driveways, shared access)
Errors in public records (misspellings, missing signatures, incorrect indexing)
Unknown heirs or estates (someone emerges claiming ownership)
Fraud and forgery (a prior deed signed by someone who wasn’t authorized)
Undisclosed spousal or co‑owner interests (a previous seller’s spouse never signed)
Without an owner’s policy, you may be responsible for defense costs and potential settlement—even if you did nothing wrong.
The Title Process: What LibTitle Does for You
When you work with LibTitle, we handle the heavy lifting behind the scenes:
Title Search – We review decades of records—deeds, liens, mortgages, easements, and court filings—to identify issues before closing.
Clear to Close – We resolve outstanding items (like obtaining lien releases or correcting recording errors).
Escrow & Closing – We coordinate with all parties, collect funds, oversee document signing, and record the deed and mortgage.
Policy Issuance – After closing, we issue your title insurance policies (owner’s and/or lender’s) for comprehensive protection.
Our goal: Clean title, smooth closing, and confident ownership.
Do Cash Buyers Need Title Insurance?
Short answer: Yes, it’s smart to get the Owner’s Policy—even if you’re paying cash. Without a lender involved, there’s no lender’s policy, so your owner’s protection becomes even more important. A single claim can cost far more than the one‑time premium.
How Much Does Title Insurance Cost?
Costs vary by state and purchase price. The owner’s policy is typically a one‑time premium paid at closing and covers you for as long as you own the home. If you’re refinancing, you won’t need a new owner’s policy, but your lender will require a new lender’s policy for the new loan.
Want an exact estimate for your property? Contact LibTitle and we’ll provide a transparent quote with all fees outlined up front.
Common Myths, Debunked
“I don’t need it because we did a title search.”
Title searches reduce risk, but they can’t guarantee there are no hidden defects. Insurance fills that gap.
“New construction is risk‑free.”
New homes can carry mechanics’ liens or boundary issues from land transfers and subcontractors.
“If something goes wrong, the seller will fix it.”
Sellers may be long gone—or unable to fix complex legal problems. Title insurance covers your ownership.
How to Make Closing Easier (and Faster)
Choose your title company early (you often have the right to choose)
Provide HOA, survey, and prior title policy (if available)
Respond quickly to document requests
Ask questions—we’re here to help
Your Next Step
Buying or refinancing? Protect your investment with LibTitle.
We’ll conduct a thorough title search, coordinate your closing, and issue policies that safeguard your ownership for years to come.
