Title insurance provides the lender and the buyer (if you purchase owner's coverage) with coverage for losses resulting from specific title defects listed in the policy.
In cases where land and property have changed hands over time, there is always the possibility an error has occurred.
If an error has occurred, it may be that someone else may be in title to or have an interest in the property that improvements encroach on property lines or that other similar problems may exist.
In these scenarios, if you do not have title insurance you could lose your investment in your home.
Lenders require "lender's coverage" to protect their investment and it only protects the lender. Owner's coverage is optional and provides separate coverage for the borrower.
