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Is home title insurance actually necessary?

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Elena_90
Joined:
27.08.2020
Posts: 2380
Topic Starter
05.01.2025 04:34
I'm currently in the middle of closing on my first house and my lender keeps pushing me to purchase title insurance. I already have homeowners insurance, so I'm a bit confused about why this is even a separate requirement. Is it just another fee to pad the closing costs, or are there genuine risks like hidden liens or ownership disputes that I should worry about? I'd love to hear from anyone who has actually had to use it or if most people consider it a waste of money.
18 replies in this topic
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Master_J
Joined:
03.02.2025
Posts: 2093
28.03.2025 13:19
It is definitely not a waste of money. My cousin found out three years after buying that an old contractor had put a lien on the property that the previous owner never paid off. Title insurance saved him thousands.
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Lida_C
Joined:
27.05.2022
Posts: 2143
12.05.2025 14:12
I skipped it on my first place because I was trying to save cash, and honestly, I got lucky. Looking back, it was a massive gamble that I wouldn't recommend to anyone else.
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regular_user
Joined:
02.02.2024
Posts: 854
13.05.2025 21:15
In reply to a previous post
Just a heads up, your lender is requiring *Lender's* Title Insurance to protect their investment, not yours. You should absolutely get an *Owner's* policy for yourself too.
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Sophia_G
Joined:
10.04.2023
Posts: 997
26.06.2025 23:23
Is it really worth the extra grand? Seems like a scam to me.
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KnowItAll
Joined:
03.02.2025
Posts: 694
29.07.2025 02:17
In reply to a previous post
It's a one-time fee, not a monthly premium. Compared to the total cost of the house, it's cheap peace of mind.
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regular_user
Joined:
08.12.2024
Posts: 2347
22.08.2025 19:13
I worked in real estate for a decade. Do not skip it. You have no idea how many weird things pop up in public records that title searches miss.
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Sam_W
Joined:
29.01.2021
Posts: 90
03.09.2025 05:16
In reply to a previous post
Homeowners insurance covers damage to the physical structure, while title insurance covers the legal ownership of the land. They are two completely different things.
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Tony_M
Joined:
22.06.2020
Posts: 1765
22.09.2025 03:53
I've never had an issue, but I'd never buy a house without it. The risk of someone showing up claiming they own a portion of your backyard is too high.
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Kate_J
Joined:
14.09.2020
Posts: 2392
29.09.2025 04:32
In reply to a previous post
If the title company missed something, you're the one on the hook for legal fees to clear the title. That costs way more than the policy.
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robert_d
Joined:
13.10.2022
Posts: 1515
01.10.2025 13:51
Check if your state has a flat rate or if you can shop around. Sometimes you can negotiate the title company fees, even if the insurance cost is regulated.
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radek_c
Joined:
26.11.2021
Posts: 1214
12.12.2025 08:43
My parents had a neighbor try to claim an easement through their garage. Their title insurance company handled the entire legal battle. Get it.
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GoldenHands
Joined:
18.11.2023
Posts: 2441
19.12.2025 06:10
Are there any scenarios where you definitely don't need it? Like new construction?
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cris_r
Joined:
18.10.2025
Posts: 2317
19.12.2025 07:36
In reply to a previous post
Even with new construction, there could be issues with the builder's liens or the land title itself. Don't skip it just because it's a new build.
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Alan_K
Joined:
06.02.2024
Posts: 2238
21.12.2025 13:02
It feels like another closing cost bloat, but it's one of the few things in the closing package that actually protects you personally.
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watcher_x
Joined:
13.09.2023
Posts: 1050
09.02.2026 01:21
I'm a closing attorney and I tell every client the same thing: You can pay a few hundred dollars now, or potentially tens of thousands later. The choice is yours.
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curious_k
Joined:
10.12.2025
Posts: 1369
19.02.2026 12:08
In reply to a previous post
Totally agree with the attorney above. I saw a case where a forged signature from 20 years ago voided a deed. That would be a nightmare without insurance.
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Mike_B
Joined:
13.07.2025
Posts: 1505
19.02.2026 12:15
If you are already tight on budget, maybe look into a no-frills policy, but don't go without it entirely.
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Maya_L
Joined:
26.01.2022
Posts: 907
30.03.2026 09:21
At the end of the day, it's insurance. You hope you don't need it, but you'll be incredibly thankful you have it if you do.

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