# Title insurance

> Title insurance covers losses from title problems that predate your purchase, like old liens or ownership claims. Lender’s vs owner’s policies explained.

URL: https://mail.mortgage-math-us.com/glossary/title-insurance/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**Title insurance** protects against losses from problems with a property’s title that existed before you bought it, such as a previous owner’s unpaid taxes, a contractor’s unpaid bill or someone else’s claim to the home. Lenders usually require a lender’s policy; an owner’s policy, which protects you, is generally optional.

## Two policies, two beneficiaries

*Lender’s and owner’s title insurance compared*

| | Lender’s policy | Owner’s policy |
|---|---|---|
| Protects | The lender’s loan | You and your equity |
| Required? | Usually, by the lender | Generally optional |
| Shown on the Loan Estimate | Section B or C | Section H, “Other” |
| How it’s paid | One premium at closing | One premium at closing |

The lender’s policy does nothing for you: if a valid claim surfaces, you’re the one who must deal with it, and only an owner’s policy covers your stake. Who pays for the owner’s policy, buyer or seller, follows local custom and the purchase contract.

## Shopping for it

The CFPB notes you can usually shop for title insurance separately from your mortgage, and buying both policies from the same company is usually cheaper than buying them separately. In a few states, including [Texas](https://mail.mortgage-math-us.com/location/texas/), the state sets the premium rates, so the premium itself doesn’t vary between title companies. The title company also runs the search for existing [liens](https://mail.mortgage-math-us.com/glossary/lien/) before closing. Compare the totals in the [closing cost calculator](https://mail.mortgage-math-us.com/tools/closing-cost-calculator/).

## Related terms

- [Closing costs](https://mail.mortgage-math-us.com/glossary/closing-costs/) and [recording fee](https://mail.mortgage-math-us.com/glossary/recording-fee/)

## Sources

- [CFPB: What is owner’s title insurance?](https://www.consumerfinance.gov/ask-cfpb/what-is-owners-title-insurance-en-164/)
- [CFPB: What is lender’s title insurance?](https://www.consumerfinance.gov/ask-cfpb/what-is-lenders-title-insurance-en-163/)

_General information, not financial advice._