Prior to closing your closing attorney will conduct a title examination to uncover any title problems that will prevent the Seller from giving you clean title to the home. Although rare, there are times that title issues escape detection, only to surface after closing. This can be a big problem for the new owner and this is where Title Insurance comes in.
If title problems are severe enough and not covered by insurance, you could actually lose your house. A title insurance policy protects you and your heirs against title defects for as long as you own the property. If you get a mortgage, your lender will require Lenders Title Insurance for the amount of the loan value. Owners Title Insurance is optional, however most homeowners and real estate professionals will choose to pay for it for peace of mind.