U.S. Mortgage Index

Title insurance

Definition

Title insurance protects against certain past problems with ownership of the property. Owner’s and lender’s policies are two coverages, not two different products with different names for the same page. Title insurance is not the title search.

In plain English

A title search looks for recorded claims. Title insurance is the policy that pays if certain past ownership problems later surface. A lender’s policy protects the lender. An owner’s policy protects the homeowner’s equity. Both are title insurance.

Technical definition

CFPB’s key-terms headings for lender’s title insurance and owner’s title insurance are PRIMARY for the official consumer product. They describe protection against prior claims against the home.

Why it matters

Closing costs include title premiums. Readers need the policy kept distinct from the search that supports it.

Sources reviewed