why should i buy title insurance 
having no title insurance exposes transacting parties to significant risk in the event that a title defect is present consider a homebuyer searching for the house of their dreams only to find after closing unpaid property taxes from the prior owner without title insurance the financial burden of this claim for back taxes rests solely with the buyer with title insurance the coverage protects the buyer for as long as they own or have an interest in the property similarly the lender s title insurance covers banks and other mortgage lenders from unrecorded liens unrecorded access rights and other defects the bottom linetitle insurance is a type of indemnity insurance that protects the insured from financial loss when there are claims filed against a title such as outstanding liens back taxes and conflicting wills the two types of title insurance are lender s title insurance and owner s title insurance lender s title insurance is purchased by the borrower to protect the lender from these claims and is the most common type of title insurance lenders almost always require the borrower to buy lender s title insurance that s because the risk of not having this type of coverage is too great leaving the buyer potentially vulnerable to financial risk if there s a problem with the title owner s title insurance is usually bought by the seller to protect the buyer against defects in the title and is less frequently purchased 