Insurance that protects against problems with property ownership that were not discovered during the title search.
Title insurance covers issues like: encroachments, survey defects, unknown liens, identity fraud/forgery, building permit violations, and zoning non-compliance. It is a one-time premium ($300-$500) paid at closing. Most lenders require title insurance. It replaces the need for an up-to-date survey in many cases, which can save the buyer $1,000-$2,000. Title insurance protects you for as long as you own the property.
Related terms: Closing Costs