Why Do I Need Title Insurance? Title Insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful  title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim. But The Lender Already Requires Title Insurance, Won't That Protect Me? Not necessarily. There are two types of title insurance. A Lender's Policy insures that your lender has a valid lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it. An Owner's Policy, on the other hand, protects your interest in the property. What Does Title Insurance Protect Me From? Monetary loss. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy covers the cost of legal defense. For examples of possible risks to your investment that are protected by an Owner's Policy, click here. How Long Does My Policy Protect Me? An Owner's Policy protects you as long as you own your title, own a mortgage from anyone who buys your land, or are liable for any warranties you make. In addition, an Owner's Policy protects anyone who receives your title because of your death. How Much Does An Owner's Policy Cost? Usually the policy is about $200 more than the lender's policy which is required on new mortgages.  The one-time premium is directly related to the value of your home.  Typically, it is less expensive than your annual auto insurance.  It is a one-time only expense, paid when you purchase your home, yet it continues to provide complete coverage for as long as you or your heirs own the property. Is My Policy Ever Upgraded To Guard Against Inflations? Yes, the Old Masters Title Owner's Policy amount increases by 10% each year for five years, to protect you from inflation. Is An Attorney's Opinion Just As Good As Title Insurance? No.  Title insurance offers you more protection, insuring you against unrecorded documents, fraud, questions of survey, mechanic's liens, and rights and claims of parties in possession.