When closing the sale of real estate, property insurance is mandatory. The lender insists on it because he wants his investment protected. When it comes to title insurance on the other hand, that is strictly optional because it protects “only the buyer”, you can use a little protection too.
Title insurance provides payment for legal defense against title
attacks and settles any valid court- ordered claims. Examples of title defects include: forgeries, improperly probated wills, fraud, missing heirs, and even mistakes in record-keeping.
A homeowner’s title insurance policy when issued at the settlement is usually available for a reasonable onetime premium. You may find that the peace of mind from title insurance warrants the additional expenditure to cover YOUR interests. The payment will normally be treated as part of the expenditure made during the closing.